Why did private firms, not state-owned enterprises (SOEs), come to dominate China’s EV sector?

My new @ChinaJournal article (co-authored with Xiao Ma @maxiaoalex) challenge the "top-down industrial policy" narrative.

The real engine? Strategic alliances between local governments and private capital. 🧵

Based on 3+ years of fieldwork, 60+ interviews (with officials, entrepreneurs, and engineers), and rich first-hand accounts, we show how strict central regulations inadvertently drove local states to bet big on private EV players.

Here is the story: (1/15) In 2014, Xi Jinping delivered a landmark remark at SAIC, one of China’s most powerful state-owned automakers.

His message: "Developing new energy vehicles (NEVs) is essential for China to evolve from an automobile power to an automobile powerhouse."

Notice where he said it. Xi didn't choose a private firm to launch this national mission. He chose a SOE giant.

In 2014, indeed the Chinese automotive industry was dominated by joint ventures (JVs) between SOEs and foreign giants. (2/15)