Building China’s EV sector: missions, capacity, experimentation

This paper examines the development of the electric vehicle (EV) industry in China from the perspective of mission-oriented innovation policies. It explores how China’s central and local governments interact to create and shape the industry, with a focus on state capacities and experimentation. Drawing on official policy documents, Chinese news outlets, EV industry data, and interviews, the paper analyzes two cases of local experimentation: one involving low-speed electric vehicles in Shandong province, and another featuring affordable, low-tech micro-EV models in Guangxi province. The paper argues that local governments, by establishing close ties with nontraditional companies and supporting experimentation, perform the functions of peripheral agencies in the context of innovation in new, emerging industries. The central government, in turn, monitors these local experiments, learns from them, and adjusts its national policies accordingly. The findings contribute to broader debates on how state bureaucracies can drive effective industrial transformation, particularly in middle-income countries.