Unveiling China’s Dominance in the Electric Vehicle Industry

China’s success in the electric vehicle (EV) industry is a result of meticulous industrial policy rather than market forces or entrepreneurship. The Communist Party of China (CPC) treated industrial development as a political task and markets as tools, highlighting China’s unique approach to industrial policy. Despite evolving language from planning to ‘guidance,’ the CPC has always upheld industrial policy, with the EV industry being the latest illustration of this stance. The West’s view of China’s EV industry as a climate initiative or a Tesla replication oversimplifies the strategic motives driving China’s EV dominance. Recognizing strategic vulnerability, China strategically embraced electric…