Volkswagen (VW) has become the latest Western car company to invest aggressively in electric vehicles in China, following China’s announcement in September that it would ramp up new energy vehicle (NEV) quotas and completely phase out gas-powered cars in a matter of decades.
- The German manufacturer will spend $12 billion by 2025 to introduce 40 locally produced vehicles, Bloomberg reports.
- This follows an earlier commitment, worth $24 billion, by the company to “build electric versions of all 300 models in the 12-brand group’s lineup.”
- VW has multiple partners in China that will build the vehicles, but a significant one is the state-owned Anhui Jianghuai, with which a joint venture agreement was greenlighted by the government in May.
- Ford last week made a $753 million investment with its partner Anhui Zotye Automobile to “make and sell small electric cars in China.”
- In October, Tesla also negotiated its way into building a wholly owned factory in Shanghai for its own electric vehicles for the Chinese market.
As China pushes the electric vehicle market forward, drawing in these massive foreign investments, the Trump administration is ironically driving backward on electric vehicles, the New York Times reports (paywall). As part of the Republican Party–led tax bill, representatives are “pushing a repeal of the electric car tax credit, which could equate to about $200 million in the coming years,” the Times notes. China is “far ahead” on innovating in electric cars, one industry observer said, while General Motors’ president affirmed his belief that “ultimately…the whole world will go” in the direction of electric vehicles.
- Banking and debt collection
Military drills help China’s best bank toughen up its staff / Bloomberg
“At Bank of Taizhou Co., trainees are pushed to count money with lightning speed, toughened up by ex-instructors from the People’s Liberation Army and mobilized to go after delinquent borrowers with the subtlety of an infantry battalion.”
- On-demand bicycles
China’s bike-sharing startups are heading for marriage or death / Quartz
Bluegogo is the latest on-demand bike company that appears to be on the verge of collapsing, as staff are cut, a supplier awaits payment, and users are unable to retrieve their deposits.
Realty company loses lawsuit against Mobike / Sixth Tone
“Beijing court rules that individuals are to blame for poorly parked bikes in residential neighborhoods.”
- Internet gaming
Weak gaming performance sees NetEase profits drop 7.8% / Caixin
“‘No need for investors to be too worried, since NetEase has more than a decade of experience in developing games,’ said NetEase CEO Ding Lei.”
- Foreign investments in Chinese tech
Qualcomm invests in nine china startups, including Sensetime, Mobike / Caixin
“The financial details have yet to be disclosed, but the company said the deals are part of its $150-million China Venture Fund, which was announced in 2014 and spans big data, AI and the ‘internet of things,’ among other areas.”
- Lifestyles of the rich and famous
Actress Zhao Wei and husband face class action from hundreds of investors after China market ban / SCMP