China is aiming to continue its manufacturing boom, boosting electric vehicle (EV) production to drive this initiative forward. Vice Finance Minister Liao Min claimed that this push would help to contain inflation while fighting climate change.
“For decades, China has been a force of disinflation for the world through its supply of manufactured products with good value for money,” Liao stated during an interview in Rio de Janeiro prior to a meeting between G20 finance ministers and the governors of their respective central banks. He explained that products have been manufactured by China to assist nations in reaching their carbon neutrality goals by 2030.
Liao explained that China would focus on growing its share in the global EV market particularly as other nations continue to focus on traditional auto markets. This also comes as a result of China not having the same advantages that other nations have in the traditional markets, hence the desire to develop an edge in the growing EV space.
Still, China will face several hurdles in its efforts to develop a foothold on the EV market given that the European Union is set to impose tariffs on Chinese EVs while the US may impose duties in excess of 50% if former President Donald Trump wins the election in November.