China against Tesla, politics, and your next car - Walla! vehicle

2022-07-07T05:23:53.410Z

The Chinese want to become global players in the economic field, they are going to get there by driving - Chinese of course

China against Tesla, politics, and your next car

The Chinese car is the breakthrough tool of the Chinese government on the way to the occupation of the West and the global breakthrough of the automotive industry in this country is the wheels of exporting the revolution

Yuval Weinrib

07/07/2022

Thursday, 07 July 2022, 07:59 Updated: 08:09

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The Chinese government sees the car industry as a convenient economic activity arena (Photo: Keinan Cohen)

Last month, news broke again that the Chinese government had banned Tesla cars from entering government-sensitive and sensitive complexes.

The main reason is the official reason - enforcement of data collection laws in the country, and fear that the information collected by the vehicles may be used by foreign parties, although Tesla is committed to keeping all the information it collects on local servers in China. Tesla, until recently The Chinese government's darling is probably suffering from something other than a deterioration in relations between the superpowers.

From the Chinese point of view, the establishment of Chinese car companies as significant players in line with European, American and Asian manufacturers is an important strategic goal that serves most of China's top strategic goals: advancing the value chain of the global economy, global transport And the ability to rely on the local economy and move to alternative energy sources.

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Chinese fear Tesla's information gathering capabilities (Photo: Keenan Cohen)

Decades of knowledge in internal combustion engines that were a significant moat that protected traditional societies - lost their importance

Yuval Weinrib (Photo: Ella Patos)

The transition to electric vehicles is a critical aspect of China's strategic plan in terms of pollution reduction and gradual transition to alternative energy sources.

It's not just about "doing for heaven's sake" of course.

The fossil fuel-based economy is perceived in China, and rightly so, as one that serves American hegemony and the "petro-dollar."

The electric vehicles allow Chinese players to reduce gaps in a very significant way compared to traditional market leaders and even lead and set the tone in the supply of strategic components.

Decades of knowledge of internal combustion engines that were a significant moat that protected traditional societies - have lost their importance.

If we take the approach that sees an electric vehicle as a "computer on wheels", then when it comes to components, supply chains and the production of computers and various electronic products, China has a large and significant advantage over most of the markets in the world.

This advantage, and the ability to rely on a local supply chain, served Chinese electric vehicle companies during the Corona crisis.

They too have suffered from the crisis of chips and supply chains - but to a lesser extent than their European competitors for example.

In the past year, about half of all electric vehicles sold in the world were made in China.

In Europe today, about a dozen Chinese car brands are sold (or owned by Chinese companies) - and it is estimated that this trend will continue.

Chinese manufacturers such as NIO have long marked the West as a destination and are on their way there (Photo: Manufacturer's website)

China's becoming a significant player in the global automotive market marks the country's rise to the top of the global value chain, and its establishment as a maker of high-tech products and no longer the 'cheapest factory in the world'.

A similar trend has characterized the entry and establishment of Japanese and Korean technology companies into Western markets in previous decades.

Chinese companies today are leading critical areas for the electric vehicle market.

An excellent example is the leading car battery company in the world, CATL, which recently announced batteries for a range of 1,000 km. The company is the battery supplier of Tesla, Volkswagen and BMW and also of the leading Chinese companies such as NIO, Aiways and Xpeng. Its plants in China, the company has a large plant in Germany and it recently announced the establishment of a new plant in the USA.

In a Bloomberg article, an American trade expert was quoted as saying: "The company is given access to our huge market that is so important to it, and in return - it will pass on its knowledge of technology, manufacturing to us, and our people.

In the past these were mantras heard from Chinese sources regarding the entry of Western companies into the domestic market.

China believes that the electric car industry is one of the harbingers of the change of trend and the transition of Chinese companies to the forefront and the pinnacle of innovation.