Local initiatives drive China's EV sector, bypassing central state control
Mayors of cities excluded from state electric vehicle cluster development collaborated with local entrepreneurs to advance the sector's growth. The central government did not intervene to stop these local efforts from undermining state-owned enterprises.
Private firms, such as BYD and NIO, operated without receiving any state grants. These private competitors have significantly outperformed state-run SOEs in the electric vehicle market.
One county reportedly incurred a loss of 6.6 billion yuan supporting a car manufacturer. China's governance structure is arguably the most decentralized system globally.
The state reportedly permits 'creative destruction' within its economic framework. Attaining a high-ranking party position in China can be achieved through strong performance at the local level.
China's economic transformation commenced with Deng Xiaoping’s reforms in 1978. The 'modern enterprise system' received party approval in November 1993.
The economy has struggled to exit a stagflationary period since 2022.






















































