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China’s EV dominance could become geopolitical leverage, analysts say
China’s auto exports surpassed one million vehicles in June and are projected to reach about 12 million by year-end, analysts note.
China is increasingly likely to use its dominance in the global electric vehicle industry as geopolitical leverage, according to analysts cited by SCMP Economy.
Michael Dunne, CEO of auto advisory firm Dunne Insights, said China can point to its role as a source of manufactured cars and use dependency on its technology and supply chains to influence other policy requests.
SCMP Economy also links the shift to China’s slower domestic auto market, noting that carmakers have pushed expansion overseas and that monthly vehicle exports surpassed one million for the first time in June.
The outlet reports that countries have raised concerns about Beijing’s alleged overcapacity, which governments attribute to state subsidies that China denies, as cheaper Chinese electric and hybrid vehicles expand globally.