Most Chinese EV Startups Are Now Being Bailed Out And Backed By The State

Just weeks after we reported that many EV manufacturers in the super-saturated Chinese market were going public to avoid bankruptcy, we are learning that China's local governments are also doing everything they possibly can to keep the country's EV projects afloat.

China is already the largest EV market in the world, making up 57% of the global market as of April 2020.

Tesla has already carved out a 20% market share for themselves in China, demonstrating the appetite for smart vehicles in the country.

Cui Dongshu, secretary general of the China Passenger Car Association said: "The regional governments are very strong investors. They will be the lifesaver for China's EV startups."

The modus operandi of state government investments are that EV startups move their headquarters to the province and build factories in the region.

In a day and age where the U.S. has grown increasingly skeptical of Chinese technology, there could also be growing skepticism about state backed Chinese EV makers looking to break into the U.S. market.

We reported weeks ago that competition in China's EV market is starting to become super-saturated.

https://www.zerohedge.com/technology/most-chinese-ev-startups-are-now-being-bailed-out-and-backed-state