By Lin Lin, People’s Daily
The abrupt collapse of electric vehicle maker Jiyue, hot on the heels of HiPhi’s decline, has ignited fresh scrutiny over the sustainability of China’s new energy automotive ambitions. Two urgent questions emerge: Do these failures signal systemic fragility? And what trajectory awaits the world’s most prolific EV market?
Industry analysts contend such corporate casualties reflect an inevitable maturation phase–the Darwinian “growing pains” inherent to any disruptive sector. China’s EV landscape, they observe, embodies a paradox of vibrancy and volatility.
The dynamism is undeniable. An unrivaled proliferation of models, relentless technological innovation, colossal manufacturing heft, and aggressive pricing strategies have cemented China’s global EV dominance. Driving this momentum is a tech-savvy demographic wave: post-90s and Gen-Z consumers now dictate market trends through digital-native purchasing behaviors.
Yet the sector remains brutally competitive. Breakneck expansion has compressed profit margins to precarious levels, with even market leaders reportedly earning under 8,000 yuan ($1,094) per vehicle. This cutthroat environment claims weaker players while pushing survivors toward relentless optimization.
The tremors extend beyond automakers. Traditional combustion-engine manufacturers face existential pressures as EV adoption accelerates, while petrol stations confront obsolescence amid charging infrastructure proliferation. Such collateral impacts underscore a fundamental truth: China’s EV revolution isn’t merely evolving–it’s actively reshaping industrial ecosystems through creative destruction.
Yet adversity holds no veto over ambition. History attests that China’s industrial ascendancy has been galvanised not by smooth passage but by friction–each obstacle a whetstone for innovation.
Decades ago, its automotive progress demanded trading market access for foreign technology. Today, the EV sector charts an autonomous course, dominating global supply chains. Parallels abound: the solar industry, once shackled by overseas monopolies over raw materials and distribution channels, now commands over 80% of worldwide photovoltaic production. Similarly, China’s once-struggling shipbuilding sector has led global output across three core benchmarks for 15 consecutive years. These trajectories share a DNA–transformative growth forged through pressure.
Contemporary battles mirror this pattern. The EV and solar sectors now navigate dual fronts: cutthroat domestic competition and geopolitical headwinds abroad. Shipbuilders, encircled by established maritime powers, systematically dismantle technical bottlenecks. Crucially, each conquered challenge begets not complacency but capacity for the next trial–a self-reinforcing cycle where industries evolve through perpetual problem-solving. This iterative momentum, far from signalling crisis, builds economic muscle memory: resilience honed in the furnace of competition ultimately propels sustainable advancement.
Market dynamics obey an iron law of natural selection. As weaker contenders retreat, resilient innovators surge ahead. BYD, the venerable automaker, seized the global EV sales crown in 2024; upstart Xiaomi defied expectations by hitting annual production benchmarks; SAIC now operates across 100 markets. This new vanguard thrives not through imitation but through audacious R&D investments and disruptive product differentiation.
In Heihe, Heilongjiang province, a frigid-weather testing hub thrives as a bellwether: 70% of this year’s trial vehicles are electric. The ripple effects extend beyond automakers, galvanizing regional supply chains and economic revitalization.
Notably, coverage by EV Pulse, a U.S.-based outlet, revealed an undercurrent at Las Vegas’ CES: during test rides in Chinese EVs, its correspondent recorded “catching up with China” as a recurring refrain among auto executives, engineers, and analysts—a phrase uttered with startling frequency.
Industrial maturation mirrors human growth. Parents of rapidly sprouting teenagers know the vexation of outgrown garments—today’s perfect fit becomes tomorrow’s constraint.
Nations, too, grapple with such growing pains. China’s hypercompressed industrialization—spanning centuries elsewhere into mere decades—inevitably generates friction. From reform to comprehensive reform to deepening comprehensive reform, the nation recalibrates policies like a tailor adjusting seams. By synchronizing industrialization with digital transformation, urbanization, and agricultural modernization, China seeks to clothe its roaring economic engine in strategies that fit—not stifle—its ambitions.
