Electric Vehicles in China: A Necessary Path Forward
In recent times, a video circulating online has sparked a debate, with the blogger questioning whether China has taken a wrong turn in developing electric vehicles (EVs). The arguments put forward include the scarcity of EVs on roads in Japan and South Korea despite their advanced automotive technologies, claims that EVs are essentially “coal-powered cars” due to unclean electricity sources, concerns about poor resale value of used EVs, and issues related to battery disposal and subsequent pollution. However, a closer examination reveals that China’s pursuit of EV development is not only correct but also an inevitable path with far-reaching implications.
First and foremost, addressing the issue of EV technology. It is a fact that electric vehicles were invented earlier than internal combustion engine vehicles, But their development was stymied in the past due to unprecedented battery technology, which suffered from low energy density and poor safety, making them less economical, safe, and convenient compared to fuel-powered cars. The turning point came when Tesla successfully overcame these core bottlenecks, leading to the global popularity of its EVs. Domestic EV enterprises in China have learned much from Tesla. The introduction of Tesla into the Chinese market served as a catalyst, spurring domestic new energy vehicle companies to engage in technological research and development, resulting in continuous breakthroughs. Today, Chinese new energy vehicles stand side by side with Tesla on the global stage.
While Tesla still has much to offer in terms of technological advancements, domestic companies have also developed numerous new technologies and innovations that Tesla does not possess. Traditional fuel vehicle leaders, due to their significant advantages in internal combustion engine technology, have been reluctant to abandon their existing technical routes, which has led to insufficient investment in EV technology and a relative lag. There have even been reports of some companies considering abandoning the EV path. However, the choice of technical routes is not a matter of right or wrong but of suitability. Ultimately, it is up to practice, time, and the market to judge.
Moving on to the issue of energy conservation and emission reduction in EVs. It is essential to view this from two perspectives. Although EVs may generate more carbon emissions during the production phase compared to fuel-powered cars, their carbon emissions during the usage phase are significantly lower. In principle, if powered by electricity from renewable sources (green electricity), EVs can achieve near-zero emissions during operation. The claim that EVs are “coal-powered cars” ignores the achievements of China’s energy revolution in recent years. Through dedicated efforts, China’s power structure has undergone a fundamental transformation. The proportion of clean energy sources such as solar, wind, and hydropower in the total installed capacity has exceeded 50%, and this figure is set to increase further. Even if coal-fired power generation (thermal power) remains, it may not rely on coal in the future; instead, hydrogen could be used as a fuel. This shift will enable China to achieve low-carbon and green electricity for the majority of its power needs, thereby enhancing the energy-saving and emission-reduction effects of EVs.
Thirdly, regarding the resale value of used EVs. The retention rate of used cars is influenced by multiple factors, with two key ones being the new car price system and consumer acceptance of the vehicle type. If new cars require a premium to be delivered quickly, otherwise requiring a wait of several months, the price of used cars will inevitably remain firm. Conversely, if the new car price system is unstable, with continuous price wars and ongoing discounts, consumers will naturally adopt a wait-and-see attitude, holding out for cheaper new car prices. Additionally, if EVs are scarce and most people are unwilling to drive them, the price of used EVs will struggle to rise. However, as consumers generally accept EVs and effective methods are developed to inspect used EVs, particularly to reasonably assess the state of batteries after use, it is believed that consumers will be willing to purchase used EVs at a lower cost. This will naturally bring the retention rate of used EVs back to a normal level.
Fourthly, the issue of EV battery recycling and pollution. It is acknowledged that there is currently no perfect solution to this problem, and improper battery recycling can indeed cause pollution. However, fuel-powered vehicles also have pollution and carbon emission issues. One of China’s strengths in many fields is its ability to forge ahead through exploration, practice, and innovation – “crossing the river by feeling the stones.” If we had waited for a perfect solution before embarking on EV development, we would have missed the opportunity to break the technological monopoly of European, American, Japanese, and Korean enterprises and achieve the current level of success.
The development of EVs in China offers a multitude of advantages that extend beyond the automotive industry itself.
Firstly, it represents a “corner overtaking” in the automotive sector. During the era of fuel-powered vehicles, China, in its attempt to exchange market access for technology, found itself in a passive position as foreign brands held a firm grip on core technologies and patents. However, in the field of EVs, benefiting from decades of accumulation and breakthroughs in related areas such as batteries, Chinese enterprises have moved from imitation to innovation, achieving breakthroughs and even surpassing foreign counterparts in some aspects, realizing a “corner overtaking.” This not only brings technological leadership to the country and the industry but also tangible benefits to consumers. Luxury experiences that once cost hundreds of thousands of yuan can now be enjoyed for 200,000 to 300,000 yuan. Previously, domestic models with the same configuration were much more expensive than their foreign counterparts, but now the situation has reversed. Moreover, the cost of using an EV is significantly lower – while a fuel-powered car costs nearly 1 yuan per kilometer in fuel expenses, an EV only requires about 0.1 yuan per kilometer, making it highly cost-effective.
Secondly, it drives structural adjustments in the energy sector. China has long faced two major challenges in the energy domain. As a large energy-consuming country, it has relied heavily on fossil energy, resulting in substantial environmental pollution and carbon emissions. Additionally, a large portion of its oil needs to be imported from the Middle East, with the “Malacca Dilemma” posing severe national security concerns. To address these, China has taken EVs as a breakthrough point to vigorously promote the electrification of energy consumption terminals. Simultaneously, it has made great strides in developing photovoltaic and wind power technologies to advance the low-carbon and green transformation of electricity. Furthermore, China is actively promoting hydrogen as a new energy carrier, which can replace fossil energy in various scenarios such as internal combustion engines and thermal power plants. Hydrogen can also serve as an energy storage medium, completing the crucial puzzle for the comprehensive utilization of renewable energy. In the future, EVs will not only be large-scale consumers of electricity but also function as short-term energy storage devices and mobile power sources. It is worth noting that the rapid development of EVs in China is also attributed to the simultaneous and vigorous construction of energy infrastructure such as charging piles and battery swap stations.
Thirdly, it facilitates the construction of intelligent scenarios. Intelligence is an inevitable trend in the development of human science and technology and a key area of competition among major powers. EVs have inherent advantages in terms of intelligence compared to fuel-powered vehicles, akin to the difference between digital signals and analog signals. The emergence of smartphones has not only created a multi-trillion industry but also brought about earth-shattering changes in human life. The next most promising intelligent scenario is the smart terminal based on EVs. This large mobile smart terminal is set to bring about significant changes, and it is a frontier that both China and the United States are vying for. Fortunately, China has gained some early advantages and is well-positioned to compete.
The benefits of developing EVs are numerous. It is aimed at enabling the people to live a better life, ensuring national energy security, protecting the environment, and seizing the initiative in the industry and the commanding heights of future technology. Thus, developing EVs is an inevitable path.
In conclusion, anything has multiple facets, and judging its merits based solely on the situation in a particular country or the opinions of certain enterprises, divorced from the historical context and usage scenarios, is narrow and biased.
The favorable development of China’s EV industry is the result of the arduous efforts of government departments at all levels, numerous enterprises and institutions, and scientific and technological personnel. It is also the outcome of continuous feedback from countless consumers and media, which has promoted the iterative upgrading of enterprises. This achievement is hard-won and deserves our cherish and continued efforts to build upon.
Author: Peng Yonglun, Senior Automotive Expert Journal Name: Automotive Insight Review DOI: 10.12345/autoinsight.2024.06