Skip to content

China Informally Asks EV Manufacturers to Use Domestic Parts

Taiwanese newspaper United Daily News quoted a report by Japanese outlet Yomiuri Shimbun saying that China has unofficially urged its electric vehicle (EV) manufacturers to utilize domestically-produced electronic components, including semiconductors. The Chinese government has additionally encouraged these EV manufacturers to set up specific targets for the incorporation of domestic parts, with potential penalties for non-compliance.

According to diplomatic sources in China, “The purpose of (Beijing’s) sending instructions verbally through former officials is to leave no evidence of exclusion of foreign investment.” Insiders said that, as Chinese automobile manufacturers swiftly shift from gasoline-powered vehicles to electric ones, they have established their own systems for production of electronic components and they have vertically integrated production of nearly all related technologies except the drivetrain.

Source: United Daily News (Taiwan), September 17, 2023