China has a blueprint to become one of the leading manufacturers of hybrid and electric cars — in 3 years! the New York Times reports.
The goal, which radiates from the very top of the Chinese government, suggests that Detroit’s Big Three, already struggling to stay alive, will face even stiffer foreign competition on the next field of automotive technology than they do today.
This reminds me of countries who skipped landlines in developing telecomm networks, instead going straight to mobile phones. China is behind in gasoline engines, so is thinking, ‘Why bother? Let’s go straight to electric.’
There’s the potential for a new export industry, but also to clean the skies of Beijing and other major cities. Those environmental results may be modest however, the Times says. But check out how the government is juicing the industry:
Beyond manufacturing, subsidies of up to $8,800 are being offered to taxi fleets and local government agencies in 13 Chinese cities for each hybrid or all-electric vehicle they purchase. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin.
Given Detroit’s troubles, it will be interesting to see what the car industry looks like a decade from now. I would venture that we will have dealer networks selling China-made cars so China can earn money to buy our debt.
That, after all, is how stimulus works.