Opinion | China’s lead in electric vehicles is unassailable – the Global North simply can’t compete
- China has the supply chains, better tech and cheaper costs that keep on falling
- Trade barriers would only force the world into two prices for one product – where the cheaper one is also likely to be better
The rapid expansion and innovation of China’s electric vehicle industry has made EVs more affordable for the world. As more EVs become cheaper than cars that use internal combustion engines (ICEs), the climate-friendly choice is also becoming an economical one.
As EV production costs fall in China, it is only a matter of time before the vehicles become much cheaper than ICE cars.
The EV industry is probably the first major modern industry that China is leading, similar to Japan’s leadership in electronics in the 1980s. The EV supply chain is mostly in China so its EV prices, other than reflecting the costs of imported materials, also reflect the cost of labour in China. Without a technological edge, EV makers in the Global North will have a hard time overcoming China’s cost advantage.
