This week, China's cabinet unveiled new measures aimed at stabilizing the electric vehicle sector and controlling battery production technologies.
Measures to Regulate Competition in the Electric Vehicle Market
During the State Council meeting on July 16, Premier Li Qiang called for an end to 'irrational competition' in the domestic market. Authorities pledged to enforce market order and strengthen price monitoring. State media reported that the focus should be on innovation and product quality rather than aggressive discounts.
New Export Rules for Battery Technologies
The Ministry of Commerce announced that any overseas transfer of eight key battery manufacturing technologies would require a government license. This rule applies to exports via trade, investment, or technical partnerships and takes effect immediately.
Advances in Battery Technology in China
Chinese firms have made significant breakthroughs in battery design over the last five years, reducing costs while extending driving range. The latest generation of lithium-ion cells relies on iron and phosphate, making them cheaper and safer compared to other materials.
Recent measures from the Chinese government reflect a desire to control the electric vehicle market and strengthen its position in battery production. This is expected to impact global competition.
