The Chinese Government Strategies in Developing Global Competitiveness of New Energy Vehicle Industry (2021-2025)

Abstract

The global market is dominated by Chinese New Energy Vehicle products and brands which including Battery Electric Vehicle and Plug-in Hybrid Electric Vehicle. The NEV expansion has expanded significantly in recent years. In order to supporting domestic NEV production, the government has various strategies through a variety of program initiatives. Using the Diamond Model of Nations' Competitiveness Advantage, this paper explores four determinants to explain the Chinese government's successful NEV competitiveness strategy in the global markets from 2021-2025. Through STEM education and infrastructure which provide a factor condition in basic and advance factors. While, the demand condition allows for a shift in NEV culture, subsidy programs, and increased FDI outbound investment. In terms of related and supporting industries, China effectively manages the upstream, midstream, and downstream supply chains. Finally, in terms of business, strategy, and structure, the Chinese government implements policies to assist the growth of NEVs while focusing on regulating the policy industry rather than supporting or improving it. As a result, the study's findings suggest that the Chinese government has recently made less effort to maintain its competitive advantage as some enterprises have been eliminated.