Can China’s EV boom give it decisive edge in geopolitical tech war?

China might increasingly use its commanding position in the global electric vehicle (EV) industry as a tool for geopolitical leverage, potentially increasing Beijing's influence over nations reliant on its technology and supply chains, according to industry analysts.

“

With China, the strategy is different. It’s to overwhelm the industry, capture it, and use it ultimately as leverage.

"With China, the strategy is different. It’s to overwhelm the industry, capture it, and use it ultimately as leverage," said Michael Dunne, CEO of Dunne Insights, an auto advisory firm. He elaborated during a discussion hosted by the Asia Society Policy Institute (ASPI) that China could assert its dominance by stating, "Oh, by the way, we’re the source of all manufactured cars today. How about that?"

Dunne suggested that China could then leverage this dependency, stating, "And you’re dependent on us for cars, and we want this and this and this from you on other political issues." This highlights a potential strategy where China could link EV supply to concessions on unrelated political matters.

“

Oh, by the way, we’re the source of all manufactured cars today. How about that?

China's automotive sector is pushing for overseas expansion as its domestic market slows. Monthly vehicle exports surpassed one million for the first time in June, with projections reaching around 12 million by year-end. The global proliferation of affordable, high-quality Chinese electric and hybrid vehicles has raised concerns in various countries regarding Beijing's alleged "overcapacity." Governments attribute this to state subsidies, though China denies these claims.

“

And you’re dependent on us for cars, and we want this and this and this from you on other political issues.