The Road to Electric Vehicle Supremacy : China's Strategic Ascent and Its Global Implications

Between 2020 and 2023, China surged from being the fifth-largest to the largest exporter of passenger cars, including electric vehicles (EVs). This paper examines the factors behind China’s rapid rise in the global EV market, arguing that while state subsidies provided local producers with cost advantages, they are not the sole drivers of China’s dominance. Strategic investments in critical mineral supply chains, refining, and battery production, alongside intense domestic competition, have also played a significant role. The paper explores the implications of China’s rise for the global automotive industry, particularly for Western economies. While trade tensions and tariffs aimed at countering China's market practices have arisen, these may not significantly hinder China's progress. Instead, the paper highlights the potential opportunities for automakers in Japan and other Western nations, who must adapt to stay competitive and explore new partnerships in the evolving market.