Wan Gang was widely praised for spearheading China’s electric vehicle strategy many years ago.
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HEFEI, China – China’s investment in Europe’s electric vehicle industry could be the way forward for both sides amid trade tensions, the leader of China’s electric vehicle strategy said on Wednesday.
“I believe the (Chinese and EU) governments are now considering how to combine investment and commodity trade through negotiations,” said Wan Gang, current chairman of the China Association for Science and Technology.
Wan spoke through an official English interpreter during a panel livestream of the World Economic Forum’s “Summer Davos” meeting in Dalian, China. Spokespersons for the Chinese Foreign Ministry and the European Commission were not immediately available when contacted by CNBC.
China’s Ministry of Commerce said over the weekend Start consultations Cooperate with the EU on its investigation into the role of subsidies for electric vehicles in China. The European Union said earlier this month it would raise import tariffs on cars.
“Although we are not exporting a large number of electric vehicles, maybe Chinese companies can try to invest in Europe,” Wan said, noting that such funding could create local jobs.
Wan became China’s science and technology minister around 2007 and is known for spearheading the development of electric vehicles in China.
He said that when China joined the World Trade Organization in 2001, he had been working in Germany for about 15 years, including working at Audi, and had experienced several oil price fluctuations.
Wan added that 2001 was also the year the Chinese government set the goal of building a “moderately prosperous society,” meaning every family would soon have their own car.
But Wan estimated at the time that fuel vehicles would put pressure on Beijing to ensure a steady supply of natural gas for consumers, while also increasing pollution.
He claimed that when China formulated its electric vehicle strategy, it was not considering competing with anyone, but considering its own survival.
The United States has also raised import tariffs on Chinese electric vehicles this year amid growing criticism of Beijing’s policies that favor domestic companies over foreign companies.
Wan said that more than 20 years ago, China asked him to return from Germany and start researching electric vehicles. By around 2010, Chinese cities were facing serious air pollution problems, prompting local efforts to switch from buses and taxis to electric vehicles, he said.
New energy vehicles, including battery and hybrid vehicles, have accounted for more than a third of new passenger car sales in China this year, according to the local passenger transport association.
However, Wan said EV manufacturers still need to do more to reduce drivers’ range anxiety, such as letting vehicles know when and where to charge automatically and improving road safety through driver assistance technology.
He said that the development of electric vehicles is an “irreversible trend” in the world, and pointed out that “we must continue to move forward unswervingly.”
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