Beijing’s Lifeline: How China’s Economic Stimulus Could Revive the Struggling EV Start-ups Amid Funding Gaps and Price Wars

Commentary | How Chinese EV Start-ups Could Finally Relax a Bit

Even with financial shortages and fierce competition, the recent economic boost from Beijing could be a saving grace for emerging EV companies, assuming it sparks renewed investment enthusiasm.

The easy access to market-driven funding played a crucial role in fueling the surge of electric vehicles (EVs) in China. Beginning in the 2010s, the Chinese capital, Beijing, initiated a consistent movement to shift from vehicles powered by an internal combustion engine. Buyers were lured by incentives that provided financial assistance for buying electric cars and simplified their registration process.

For those investing, the electric vehicle (EV) industry in China appeared to be a guaranteed win. Businesses across the supply chain had access to vast sources of funding from capital markets, sovereign wealth funds, and venture capital entities, within China and internationally. New companies in the industry attracted billions from investors keen to support prospective high-value startups in inventive and eco-friendly sectors.

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'Outpacing on a curve': how China's electric vehicle sector surged to rule the global market