China’s Electric Car Push Lures Global Auto Giants Despite Risks19. October 2017
German auto giants, including Volkswagen and Daimler are pushing for a rapid electric car expansion. This major jump in production will utilize the growing Chinese manufacturing market.
China is the perfect market for electric cars. Not only has China pledged to eventually ban gasoline and diesel powered fueled vehicles in the future. They are also heavily investing in electric car technology and infrastructure.
The Chinese administration is doing everything to lure in big auto giants. There are several reasons for this. First and foremost, it will help in positioning China as a major manufacturing player in electric vehicle technology.
Secondly, the Chinese government is producing laws and placing provision on these foreign automakers to work in tandem with local Chinese companies. Meaning that the Chinese auto giants will gain new insight and technology to bolster their own home-grown manufacturing.
Admittedly, some foreign auto giants have expressed concern about sharing technology, though the pay-off for having access to the commercial Chinese auto market, the largest auto-market in the world, is highly important for boosting their own sales.
Notably, Hubertus Troska, the chairman and chief executive of greater China at Daimler said, “We will increase it even further — we’re honestly not very concerned about the tech transfer.”
This I.P. sharing isn’t just crucial in terms of the electric car market. As per the China 2025 roadmap, China aims at becoming a major player in several areas, including (but not limited to) Robotics, AI and emerging technologies more generally. And whilst there remains some controversy as to the dangers of sharing tech secrets in the long-term, many companies are looking to China to super-charge their short term gains.
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