China is the clear global leader in the production and sale of electric vehicles (EVs). Last year, 770,000 EVs were manufactured and sold in the country, a 53% increase over 2016 and almost four times the number sold in the United States. With EVs still at a cost disadvantage to vehicles made with traditional internal combustion engines (ICE), rapid growth in EVs has been made possible by China’s very generous subsidy policy. To encourage the growth of the industry, China has provided manufacturing incentives to EV companies, as well as subsidies to consumers who purchase EVs.
