The Political Economics of China’s Electric Vehicle Industry: A Note

The rapid rise of China’s electric vehicle industry - especially its booming exports - has drawn global attention. This study provides a distinctive analysis of the industry’s political economy from a domestic Chinese perspective. Although the electric vehicle sector contributes only modestly to China’s overall economy, it remains one of the few dynamic areas in an otherwise sluggish post-COVID landscape. Drawing on Baidu Index data as of 30 June 2025, the study shows how the Chinese government showcases the electric vehicle industry as a flagship of industrial upgrading and New Quality Productive Forces, using it to boost national confidence. However, its impact varies depending on the target audience and specific events.