The Chinese government, determined to become a world leader in green technology, says it plans to invest billions of dollars over the next few years to develop electric and hybrid vehicles.
An electric car, right, from BYD. China wants more than a million electric and hybrid vehicles in use in the next few years.
Green
The government said a group of 16 big state-owned companies had already agreed to form an alliance to do research and development, and create standards for electric and hybrid vehicles.
The plan aims to put more than a million electric and hybrid vehicles on the road over the next few years in what is already the world’s biggest and fastest growing auto market.
The announcement, analysts say, is another example of how China seeks to marshal resources and tackle industries and new markets. The plan also underlines what China describes as its growing commitment to combating pollution and reducing carbon emissions.
According to some reports by state-run media, Beijing intends to invest nearly $15 billion in the venture, which if true would make it one of the world’s most ambitious attempts to develop more energy-efficient vehicles.
The bold plan was announced late Wednesday by one of China’s most powerful bodies: the State-owned Assets Supervision and Administration Commission. Sasac, as it is known, operates under China’s cabinet, or State Council. From Beijing, it oversees about 125 of China’s biggest state-owned companies.
State-owned companies “have an overall advantage in developing the electric vehicle industry,” Li Rongrong, Sasac’s chairman, said in a statement.
Analysts say the government plan bears watching.
“This is the kind of plan the government would like to happen, and they certainly have the resources to put behind it,” said Oded Shenkar, a professor of management at Ohio State University and the author of “The Chinese Century.”
“The government could easily underwrite or subsidize the development costs,” Professor Shenkar said, “and do it at a time when the global car industry is still reeling.”
