China Shifts Focus: EVs Omitted from Strategic Industries Plan

In a significant pivot, China's latest five-year plan, spanning 2026-2030, has excluded electric vehicles (EVs) from its roster of strategic industries. This is notable as it marks the first such exclusion in over ten years. The decision reflects the nation's struggle with an oversaturated EV market and a resultant push towards alternative sectors for economic growth. Prioritized instead are emerging fields like quantum technology, bio-manufacturing, and hydrogen energy.

Historically, China has invested heavily in electric vehicles, with successive five-year plans promoting the sector's development through strategic support and substantial subsidies. These efforts propelled China to the forefront of the global EV landscape. However, the current strategic shift underscores a re-alignment towards new growth drivers beyond NEVs as articulated by key Chinese officials.

The full details of the five-year plan are set to be unveiled at a forthcoming parliamentary meeting in March. President Xi Jinping has stressed the importance of a balanced, measured approach to development, avoiding rushed investments into emerging sectors. This recalibration comes amidst struggles with overcapacity in the domestic auto market and ongoing trade tensions that challenge car export growth.