China Leads Global Electric Vehicle Production With Millions of Units Manufactured in 2024, But Now President Xi Jinping Himself Warns of the Risks of Unchecked Expansion, Criticizing Hasty Decisions by Local Governments and Calling for More Responsibility in the Sector.
The President of China, Xi Jinping, issued a direct and unusual warning about the rapid growth of the electric vehicle industry in the country.
Despite China’s success and global leadership in the sector, Xi criticized what he called “uncontrolled expansion” and called for more responsibility from local governments and the population.
Rising Production and Growing Concerns
In recent years, China has become the center of the electric vehicle industry worldwide. According to recent data from the International Energy Agency (IEA), the country produced about 12.4 million electric vehicles in 2024, representing over 70% of global production.
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Brands like BYD, Geely, Chery, Nio, Xpeng, Leapmotor and even Huawei are among the names dominating the market.
China’s strength is such that the CEO of Ford declared that the Chinese advancement is “the most humiliating thing I have ever seen.” Even with this prominence, the Chinese president expressed concern over the industry’s trajectory.
Criticism of Excess and Recklessness
During a Communist Party meeting, Xi Jinping directly questioned whether all provinces should invest in the same areas.
The statement generated strong repercussions within China and was highlighted in various national newspapers. Xi warned about the risks of hasty decisions made by local leaders, referencing popular sayings like “the three pathetic officials,” who act without considering the consequences.
The country’s automotive industry is experiencing a price war among manufacturers, which has affected profits and generated tensions with suppliers.
Xi emphasized that GDP growth should not be the sole focus and highlighted the dangers of accumulated debt. “We must not allow some to shirk their responsibilities and leave problems for future generations,” he stated.
Lack of Preparedness in Other Technological Areas
Xi’s warning was not limited to electric vehicles. The president also criticized excessive investment in projects related to artificial intelligence.
According to the Financial Times, local governments built data centers without the necessary technical preparedness, wasting important resources, such as high-performance chips.
The new statements mark a significant change in tone. A year ago, Xi denied that there was excess capacity in the sector. Now, the president’s focus seems to be on sustainability and the responsibility of decisions.
