Domestic Incentives and the Internalization of Chineses Manufacturing in the Wind, Electric Vehicle, and Battery Industries

Ilaria Mazzocco

Institute on Global Conflict and Cooperation, Working Paper Series from Institute on Global Conflict and Cooperation, University of California

Abstract: Chinese firms are leading players in the production of clean energy technologies and appear set to expand further. This paper analyzes trends in Chinese clean tech manufacturing including internationalization, and the outlook for manufacturing facilities outside of China in the clean energy technology industry, including EVs, batteries, and wind turbines. Among the main findings: Chinese clean energy technology companies have been relatively quick to expand their foreign market share but production outside of China is still lagging. Europe is likely to be the preferred destination for Chinese battery, EV, and wind companies but current investments are limited to the battery industry. The production of different technologies is subject to different sets of incentives including cost and political considerations that will determine how quickly companies will internationalize production. Overall, the diversification of production would bolster the resilience of supply chains and economic development but is likely to proceed more quickly for batteries and more slowly for other technologies.

Keywords: Social and Behavioral Sciences; China; renewable energy; technology; industrial policy; manufacturing (search for similar items in EconPapers)
Date: 2023-02-01
New Economics Papers: this item is included in nep-cna, nep-ene, nep-int and nep-tre
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