Weekend Long Read: Chinese Auto Industry’s Clean Future

[para. 1] Caixin is celebrating its 15-year anniversary by revisiting past interviews with China's influential business and government figures to glean insights on current pressing issues like climate change and the China-U.S. tech war. [para. 2][para. 3] An influential figure featured is Miao Wei, a former auto industry executive who transitioned into policymaking. Educated in internal combustion engines, he led Dongfeng Motor Group and later served as China's Minister of Industry and Information Technology. He is currently the vice chairman of the Committee on Economic Affairs in China’s political advisory body.

[para. 4][para. 5] Miao's interviews, dating from 2014 to 2024, focus on China's industrial policy and the growth of its new energy vehicle (NEV) sector. He stresses the importance of balancing government intervention and market forces, viewing markets as decisive in resource allocation while ensuring fair competition and promoting technological innovation. [para. 6] This approach is critical as China transforms from a cost-driven economy to an innovation-led one.

[para. 8] Miao underscores the need for demand-side policies to complement supply-side initiatives, such as in China's solar and NEV industries. [para. 11][para. 12][para. 13] Discussing NEVs, Miao notes China's global leadership in technology, production, and sales. He emphasizes the significance of China's large market and institutional unity in achieving technological advancements. He is optimistic about NEV startups due to their market-oriented and user-centered approaches, which attract substantial investment.

[para. 14][para. 15][para. 16] Despite becoming the world's top vehicle producer in 2009, Miao admits China has yet to become an "auto powerhouse," highlighting gaps in brand recognition, export capacity, and core technologies. [para. 17][para. 18][para. 19] As China emerges as the largest auto exporter in 2023, Miao advises against repeating past mistakes in other markets by focusing on sustainable competitive strategies rather than short-term gains.

[para. 20][para. 22] Chinese automakers are expanding globally, with significant investments in NEV production facilities worldwide. Miao stresses the necessity of enhancing global competitiveness by boosting technical prowess and entering higher market segments, as indicated by increasing export prices. [para. 24][para. 25] He also sheds light on Chinese auto companies’ growing influence in the global NEV market through collaboration with foreign firms in technology and platform sharing, seen as a promising trend.

[para. 26][para. 27][para. 28] Joint efforts in autonomous driving and intelligent vehicle technologies are crucial. China is well-positioned in policy and commercialization, proposed Miao, noting the fragmentation in proprietary systems and the potential for open-source alternatives. [para. 30][para. 31][para. 32] While Western firms like Tesla use proprietary software, Miao dreams of an automotive operating system akin to Android in smartphones, achieved through cross-domain integration.

[para. 33][para. 34] Miao touches on generative AI developments and their impact on the automotive industry, comparing Chinese and foreign approaches to training autonomous driving AI models. [para. 36][para. 37][para. 39] Regarding perceived overcapacity in the domestic NEV sector, Miao argues that it is not yet a significant issue given the potential for market and export growth. NEV production could still expand significantly without exceeding capacity.

[para. 40][para. 41][para. 42] For continued growth in the NEV sector, Miao champions further reform and opening up, advocating for both inward foreign participation and outward international collaborations. This dual approach can help overcome structural challenges and drive industrial advancements.