'Made in China 2025': the development of a new energy vehicle industry in China. Issue 1 (2nd January 2019)

• Record Type: Journal Article
• Authors: Yeung, Godfrey
• Is Part Of: Area development and policy. Volume 4:Issue 1(2019)
• Page Start: 39
• Page End: 59
• Publication Date: 2019-01-02
• Subjects: market creation -- regulation -- domestic production networks -- global production networks -- new energy vehicles -- China; ; 市场创造；管制；国内生产网络；全球生产网络；新能源汽车；中国; creación de mercados -- regulación -- redes de producción nacional -- redes de producción global -- vehículos de nuevas fuentes de energía -- China; создание рынка -- регулирование -- национальные производственные сети -- глобальные производственные сети -- транспортные средства на новых источниках энергии -- Китай; Regional planning -- BRIC countries -- Periodicals; Economic development -- BRIC countries -- Periodicals; Rural-urban relations -- BRIC countries -- Periodicals; Human geography -- BRIC countries -- Periodicals; Regional planning -- Developing countries -- Periodicals; Economic development -- Developing countries -- Periodicals; Rural-urban relations -- Periodicals; Human geography -- Developing countries -- Periodicals; 338.90091724
• DOI: 10.1080/23792949.2018.1505433
• Languages: English
• ISSNs: 2379-2949

Abstract

ABSTRACT: This paper examines how the state can facilitate the establishment of a domestic production network in new energy vehicles (NEVs), from the making of electric vehicle batteries and battery management systems to the manufacturing of NEVs. The case of China illustrates how a non-firm actor was able to create the largest NEV market in the world by implementing proactive policies for market creation and new industrial regulations for cost and range parity. To facilitate the further development of domestic production networks for NEVs, the Chinese government shifted its regulatory parameters and leveraged the market size to drive the incumbent global automakers to rejig their product portfolios and form joint ventures with domestic NEV-makers in China. This provides a prima facie case illustrating how a proactive state can take a dominant role in establishing a domestic production network without coupling with global lead firms in global production networks.