China’s Premier Li Qiang has told the World Economic Forum (WEF) meeting in Dalian that its electric vehicles (EVs) and lithium batteries meet domestic demand.
Chinese firms are facing backlash over “unfair subsidies” that are expected to “flood” the EV markets with “cheap green technologies.”
Reuters reports that the latest development comes as China and the European Union prepare to host technical talks on the planned tariff hikes on imported Chinese-made EVs.
The European Commission has released plans to impose duties of up to 38.1% on electric vehicles imported from China. Beijing is, however, threatening to file a lawsuit against EU duties on EV imports at the World Trade Organization.
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China believes EV demand meets its supply
During the WEF meeting, Li told delegates China’s production of advanced electric vehicles and lithium-ion batteries met their domestic demand. Reuters reports that Li believes the “rapid rise of China’s new industries” is rooted in their “unique comparative advantages.”
There are concerns that China’s production-focused development model could flood the market with cheap goods amid weak domestic demand.
Tesla’s position in the EV market
Tesla has been growing at a rapid rate in China’s EV market. Chinese authorities lifted restrictions on Tesla’s cars after the successful compliance with the country’s data security requirements
Elon Musk is now eyeing his next big move: to test Tesla’s self-driving technology in robotaxis.
He discussed these plans with Li during his visit to Beijing in April. Meanwhile, speculation is rife that Musk’s visit to Beijing could mean that Tesla’s Full Self-Driving (FSD) software will be widely implemented in China. The service costs $99 a month in the US.
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
