Chinese Government Pressures Electric Vehicle Companies to Use Only Domestic Parts

China Orders Domestic Electric Vehicle Companies to Prioritize Localization

Foreign media reported that the Chinese government has instructed domestic electric vehicle production to use Chinese-made semiconductors and other components.

On the 17th, Yomiuri reported that a senior official who served as the minister of the Ministry of Industry and Information Technology, responsible for industrial policy in China, convened Chinese automobile-related companies last November and gave verbal instructions to use domestically produced parts from Chinese companies.

It is also known that this official instructed setting numerical targets for the usage rate of Chinese-made parts. The newspaper mentioned that if these numerical targets are not met, penalties may be imposed on electric vehicle manufacturers.

Yomiuri stated, "It appears to be an intention to complete the rapidly growing global electric vehicle supply chain domestically," and added, "There is a high possibility that parts suppliers from the United States, Japan, and Europe will be excluded in the future."

The Ministry of Industry and Information Technology and six other ministries announced on the 1st of this month in the "Work Plan for the Stable Growth of the Automobile Industry" their intention to establish measures to oversee supply chain security.

This content was produced with the assistance of AI translation services.