Over the past decade, China's automotive sector has experienced a boom that has overturned the balance of the global industry, particularly with the rise of local electric vehicle (EV) manufacturers. Their sales have pushed traditional vehicles to the back of the domestic market before flooding global markets with record exports at competitive prices.
However, the Chinese wave today appears to be heading for a reversal. Beijing has begun cutting government support for electric vehicles as part of its new five-year plan, a move set to curb production and exports and could once again reshape the global landscape.
In the industrial plan for the 2026-2030 period, which serves as the supreme economic guideline for China's strategic industries, support for electric vehicles has been scaled back.
