The Three "Stumbling Blocks" Block the High Growth of New Energy Vehicles

In 2018, during the two national conferences, the Chinese government introduced several "policy red envelopes" aimed at boosting the development of new energy vehicles. These measures were expected to place China’s new energy vehicle industry on a new "fast track." However, despite the positive momentum, some members of the National People's Congress and the Chinese People's Political Consultative Conference highlighted that challenges still exist. At the opening of the first session of the 13th National People's Congress on March 5, Premier Li Keqiang emphasized in his government work report that the purchase incentives for new energy vehicles would be extended for another three years. He also called for promoting the development of the new energy automobile industry and expanding market access. Following this, Miao Miao, Minister of Industry and Information Technology, stated that with technological progress and improved charging infrastructure, the sector would continue to grow rapidly. Over the past five years, under policy support, China has become the world’s largest producer and seller of new energy vehicles. By the end of last year, cumulative sales had surpassed 1.8 million, with annual production and sales reaching nearly 800,000 units—an increase of over 50% compared to the previous year. Industry experts believe that these policy-driven initiatives will fuel further growth. Yet, even as enthusiasm for new energy vehicles grows, some deputies have raised concerns about potential obstacles. What are the key challenges ahead, and what solutions do they propose? **Stumbling Block One: Local Protectionism** Some cities have created local standards and restricted access for new energy vehicles from other regions, hindering fair competition. Wang Fengying, president of Great Wall Motors and a long-serving NPC deputy, called for breaking down these barriers by establishing a unified national market and regulatory framework. She argued that inconsistent subsidies and unclear timelines make it difficult for companies to plan effectively. Wang suggested central government intervention to review local policies and ensure transparency. She also proposed shifting subsidies from vehicle purchases to user-based incentives like electricity or toll discounts. **Stumbling Block Two: Inadequate Charging Infrastructure** As of 2017, only 214,000 public charging stations had been built nationwide—far below the target of 4.8 million by 2020. Xu Heyi, CPPCC member and chairman of Beijing Automotive Group, pointed out four major issues: site selection, expansion, coordination, and management. He recommended accelerating R&D in advanced charging technologies, upgrading power supply systems, and setting clear construction standards for residential and public parking areas. A special coordination office was also proposed to streamline approvals and provide financial support. Yin Tongyue, a CPPCC member and Chery Automobile chairman, advocated for adjusting peak-valley electricity pricing to encourage nighttime charging, reducing grid waste and lowering emissions. **Stumbling Block Three: Battery Disposal** With increasing adoption of new energy vehicles, battery recycling has become a critical issue. By 2017, China produced 37.06 GWh of batteries—a 21.5% increase from the previous year. Wang Qi, an NPC deputy from Sichuan Qiyang Auto, warned that many batteries from early adopters are now nearing the end of their lifespan. Improper disposal can lead to heavy metal, alkali, and fluoride pollution. To address this, Wang proposed improving waste battery management, creating a tracking system, and holding manufacturers accountable for recycling. Pilot projects and standardized recycling frameworks should be established, supported by government policies and R&D investment. In summary, while China’s new energy vehicle industry is booming, addressing local protectionism, building better infrastructure, and managing battery waste remain key challenges. The insights from these representatives highlight the need for coordinated, forward-thinking policies to sustain this growth.

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