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m2mdas2 | 2 years ago
So in west clean energy push is actually a moral obligation for reducing the effects of climate change. Whereas for China it is the main way for future growth, to become less dependent on oil supply chain which it does not control. Also they know that they can't compete in ICE vehicles with the established companies. So they started working on EV long before Elon Musk popularized EV in West.
The subsidized whole EV industry. As a result hundreds of EV companies were created seeing the opportunities. As a result nationwide EV infrastructure was built. Five years ago China did the most unconventional thing. They invited Tesla to build the factories and at a same time removed most subsidies given to local EV companies. So Tesla and local companies were having same equal footing.
It resulted in a pure form of free market competition. It became a bloodbath, a king of the hill type survival game where Tesla sat at top of the hill. As a result of competition innovation, optimization happened. Most of the local EV companies died. Remaining became almost the same level as Tesla and BYD became the new king of the hill (at least in China).
The unconventional decision by China may look foreign to western audience but it actually resonates to us who are raised by Asian families. So if you are a child in an asian households parents most of the time talks about a 'kid next door' who is good at study. The parents frequently tells their child to become as good or better than the 'kid next door',saying that we will give you as good environment within our reach to achieve it. It gives an implicit pressure on the child to become better. Obviously not all become as good as the kid next door but some prevails.
In the Chinese EV market case Tesla was that 'kid next door'.
Edit: Sorry wrong video. Trying to find the video.
Edit2: found the video https://www.youtube.com/watch?v=8-NcTawauXA . Skip to the 9 minute.
sceadu|2 years ago