But the ready availability of market-based financing was a decisive factor driving China’s EV boom. Since the 2010s, Beijing has embarked on a sustained effort to transition away from internal combustion engine vehicles. Consumers were enticed by incentives that subsidised purchases of electric cars and made it easier to register them.
To investors, China’s EV sector looked like a sure bet. Companies throughout the supply chain were able to tap deep pools of funding from capital markets, sovereign wealth funds and venture capital firms, both in China and from overseas. Start-ups in the sector raised billions from investors eager to finance potential unicorns in innovative, environmentally friendly industries.
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‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
