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China's EV bosses take spotlight at political meeting as priorities shift
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China's EV bosses take spotlight at political meeting as priorities shift
Mar 5, 2024 3:19 AM

BEIJING, March 5 (Reuters) - Chinese electric vehicle

makers made a strong showing at the start of the country's

annual parliamentary meeting on Tuesday, bolstered by official

recognition of their growing clout on the world stage as they

asked for more regulatory support to become global brands.

When Yin Tongyue started Chery Automobile 27

years ago, China's auto industry was dominated by foreign

companies and the prospect of Chinese people building their own

cars was a pipe dream, he told reporters on the sidelines of the

National People's Congress (NPC), China's rubber-stamp

parliament.

Fast forward nearly three decades, and China - the world's

largest auto market - also has clinched the title of the world's

largest auto exporter. But Chinese automakers must look beyond

sales superlatives to focus on technological innovation, quality

reputation, and social responsibility, Yin warned.

"To transform from a large car country to a strong car

country, it is not enough to rely on sales or scale," said Yin,

a NPC delegate. "We also need to have our own Chinese global

brands that are recognized by others around the world."

Premier Li Qiang, in his work report to the week-long NPC

meeting outlining key government goals, cheered progress in the

electric vehicle (EV) sector, which has been a rare bright spot

in the struggling economy, despite an intensifying price war

that has squeezed automakers' margins.

"China accounted for over 60 percent of global electric

vehicle output and sales," the report said, praising "the

30-percent increase in exports of the 'new trio,' namely,

electric vehicles, lithium-ion batteries, and photovoltaic

products."

Pledging to "consolidate and enhance our leading position in

industries such as intelligent connected new-energy vehicles,"

China said it would boost domestic spending on EVs via trade-in

programmes and the revision of local policies that restrict the

purchase of cars.

These commitments show China's continued support for its

prized EV sector. But the government -- which extended a tax

exemption for the purchase of new energy vehicles through the

end of next year -- did not announce new subsidies.

Policy recommendations put forth by automakers primarily

sought regulatory changes to speed up the adoption of new

technologies, including autonomous driving.

GLOBAL SPEED BUMPS

China's rise as the top EV exporter, however, has sparked

concerns in two important auto markets: Europe and the United

States. Exports have been a key driver of growth for Chinese

automakers as demand in their home market weakens.

The European Commission last year launched an investigation

to determine whether to shield EU producers from a "flood" of

cheaper Chinese EVs that it says benefit from state subsidies.

The United States last month launched a probe into whether

Chinese "connected" vehicles pose national security risks.

On Monday, Robin Zeng, chairman of Chinese battery giant

CATL and member of the Chinese People's Political

Consultative Conference (CPPCC) top advisory body, told

reporters that Europe did not have enough "higher-quality"

products yet. He also dismissed U.S. concerns over Chinese

vehicle data collection as unnecessary and resolvable through

communication.

SHIFTING PRIORITIES

The high-profile presence of EV bosses at the parliamentary

meeting mirrored the shifting priorities of Chinese

policymakers.

Yin was in the company of other auto heavyweights, including

Geely Chairman Eric Li, Changan Auto

Chairman Zhu Huarong, and Xpeng's ( XPEV ) Chief Executive He

Xiaopeng.

Pony Ma, chief executive and co-founder of tech giant

Tencent Holdings ( TCTZF ), and Richard Liu, founder of one of

China's largest e-commerce platforms JD.com, used to be

regulars at the annual meeting.

But in recent years, following a regulatory crackdown on the

tech sector, the internet bosses have receded from the

limelight.

Another industry with a strong turnout at the meeting was

the chip sector, which has been a target of U.S. export curbs

and a focus of China's efforts to become self-reliant.

Prominent industry figures included Zhang Suxin, chairman of

China's second largest foundry Hua Hong Semiconductor,

Shi Lei, president of chip packaging and testing firm Tongfu

Microelectronics, and Chen Tianshi, president of AI

chipmaker Cambricon.

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