While the U.S. hesitated, China built an electric vehicle (EV) empire. "They've taken over the world, except for North America," says Lei Xing, a Chinese auto industry expert.

Over the past 15 years, China has constructed a massive network of more than 10 million electric car chargers, convinced hundreds of millions of drivers to switch to electric vehicles through subsidies and other incentives, and introduced over 100 EV brands with various price options. This rapid growth is part of what Lei Xing calls "Chinese speed," a term reflecting China's extraordinary pace of development.

China's large-scale and rapid adoption of electric vehicles has far surpassed the U.S. and other countries, positioning Chinese automakers as global leaders for years to come. In July and August 2024, more than half of all cars sold in China were electric or hybrid.

How China Captured the EV Market

China's success in the electric vehicle market did not happen overnight. The key factor was the country's early realization that EVs represented the most significant transportation innovation since Henry Ford revolutionized the automotive industry in the early 20th century.

To accelerate EV development, the Chinese government pursued a centralized economic strategy similar to Japan's industrial policy in the 1970s and 1980s. In 2009, China launched a pilot subsidy program called "Ten Cities and a Thousand Vehicles," aimed at subsidizing electric and hybrid vehicles in public transportation, including buses and taxis.

By 2013, these subsidies were extended to individual consumers, further encouraging the purchase of electric vehicles. Although the government ended subsidies in 2022, China had already cemented its dominance in the EV market. Additionally, electric vehicles in China are exempt from a 10% sales tax, a benefit that will remain in effect until 2027.

Between 2009 and 2023, the Chinese government invested $231 billion in subsidies. As a result, new EV registrations in China are expected to reach 8.1 million in 2023, a 35% increase from 2022.

China has also made significant strides in EV infrastructure, building the world’s largest charging network. As of June 2024, China had 10.2 million EV chargers in operation, a 54% increase compared to the previous year.