• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

2

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

3

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998

1

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

2

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

3

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
CommentaryElectric vehicles

China Is Poised to Take Over This Industry. America Can’t Let It Happen.

By
Ashley Feng
Ashley Feng
and
Sagatom Saha
Sagatom Saha
Down Arrow Button Icon
By
Ashley Feng
Ashley Feng
and
Sagatom Saha
Sagatom Saha
Down Arrow Button Icon
October 17, 2017, 4:36 PM ET
Add Fortune on Google for similar content.

The future of transportation will be electric vehicles (EV). As battery costs come down and countries turn away from internal combustion engine vehicles, the most aggressive outlooks see EVs making up one-third of the global car fleet by 2040.

Given the pressing need to decarbonize the global transportation sector, this seems like positive news. However, China, the emerging market leader, would stifle innovation if given the chance to dominate. Without competition from inventive American firms, the impending EV revolution would be one that slows the industry and speeds climate change in the long run.

If Chinese innovation in the EV market is at all similar to its role in the solar panel industry, the world will only see “good enough” innovation; because there is no competition or pressing problem to stimulate technological breakthroughs, China will settle for minimum advances in EVs.

For the past decade, China has identified new energy vehicles (NEVs), which includes electric vehicles, as a strategic and emerging industry, unlocking strong financial and political support from top leadership. Recent trends have demonstrated Beijing will not shy away from using the law to force non-defense related companies to transfer technology or store their data on Chinese servers. In 2013, Kawasaki, a Japanese company, found itself competing against its own designs abroad when CSR Sifang, its former partner in China, used transferred technology to export Japanese-designed high-speed rails to new markets in Europe.

For foreign automakers to do business in China, they must have a joint venture with a domestic company as majority owner. The Chinese government also requires automakers to incorporate NEV technologies in their electric vehicles if they have them. Due to these stringent requirements, foreign companies end up forfeiting their intellectual property to Chinese competitors they are forced to work with, boosting domestic Chinese industry and harming their own bottom lines in the long run.

Despite this, foreign companies have quickly realized that China is the hottest market for EVs and are still willing to compete there at any cost. Ford, the quintessential American automaker, is exploring developing its new line of electric cars in China, which would then be exported to America.

Through leveraging its market size and government-directed economy, China is looking to lead the EV market. By poaching critical technologies and forcing joint ventures, China has leapfrogged to become the world’s second-largest producer in a fraction of the time it took foreign competitors to develop their products.

The bad news is this situation will only result in incremental improvements that will not ultimately benefit the environment. Chinese companies are widely known for dumping products to create monopolies and bankrupt competitors, creating an uncompetitive environment in which China could fashion itself as a leader with little merit.

While this practice is unproductive across the board, it could be truly damaging in the energy sector. Imagine a world where leading companies only improve marginally on cost and performance. Incremental progress will not sufficiently combat climate change.

The U.S. needs to expand funding for research and development of new, innovative vehicle technologies, as government support is crucial to the commercialization of EVs and nearly all energy technologies, often defraying the upfront cost before mass-market viability.

The Trump administration has correctly identified the danger that America’s unbalanced trade relationship with China poses to national security and should fight for fair market access for automakers in China. Even under unfair conditions, the U.S. still managed to export $8.9 billion worth of cars in 2016, indicating latent Chinese demand.

Congress and the administration should work together to codify and fund the next generation of infrastructure needs, pouring financial support behind charging stations around the country to incentivize domestic EV sales.

The U.S. has sustained economic growth through promoting fair and open markets, prioritizing R&D, and investing in national infrastructure. U.S. policymakers should now lead the transformation of America’s transportation sector, lest they leave the next generation in the Beijing’s hands.

Ashley Feng is the research associate for China studies and Sagatom Saha is the research associate for energy and U.S. foreign policy at the Council on Foreign Relations.

About the Authors
By Ashley Feng
See full bioRight Arrow Button Icon
By Sagatom Saha
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

k
CommentaryBox office
How Hollywood’s youngest filmmakers are exposing Gen Z’s real problem with AI
By Reid LitmanJuly 5, 2026
12 hours ago
k
Commentary250 Years of Innovation
Media leadership unity in defying Trump’s assault on free speech: standing tall against historic comparisons
By Jeffrey Sonnenfeld, Jeff Bewkes, Kay Koplovitz, Tom Glocer and Marvin KalbJuly 4, 2026
2 days ago
ds
CommentarySoftware
I argued with the father of open source for 2 years. Now the AI fight is the same — only bigger
By David SiegelJuly 3, 2026
2 days ago
ashok
Commentary250 Years of Innovation
The greatest startup in history: What we can learn from America’s founders at today’s AI frontier
By Ashok N. SrivastavaJuly 3, 2026
2 days ago
2
Commentary250 Years of Innovation
America’s secret weapon isn’t just innovation — It’s the freedom to fail
By Keith KrachJuly 3, 2026
3 days ago
rn
CommentaryCryptocurrency
Former Iran director at NSC: Crypto legislation is a ticket to sanctions evasion
By Richard NephewJuly 2, 2026
3 days ago

Most Popular

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
2 days ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
3 days ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
3 days ago
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
Success
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
By Orianna Rosa RoyleJuly 3, 2026
3 days ago
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
Investing
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
By Jason MaJuly 5, 2026
3 hours ago
Russia's fuel crisis is so bad that a mom and her baby waited in line for 18 hours to get gas — 'Are we in the Soviet Union?'
Energy
Russia's fuel crisis is so bad that a mom and her baby waited in line for 18 hours to get gas — 'Are we in the Soviet Union?'
By Jason MaJuly 4, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.