Beyond Economics

The End of Growth and Time for a New Era

Category Archives: Globalization

China, Electric Cars, and the Future

Coda - Chinese electric car to be built in US

With all the hand-wringing in the business press about China manipulating its currency, we may be missing the big picture. In a recent op-ed piece in The New Your Times, Thomas Freidman (The World is Flat) calls attention to how China is aggressively investing in the future. Thankfully, the US government helped save GM from itself and we at least have the Chevy Volt, which could be a game changer in its own way.

Their Moon Shot and Ours
By Thomas L. Friedman, 9/25/2010

China Inc. just named its dream team of 16-state-owned enterprises to move China off oil and into the next industrial growth engine: electric cars.

China is doing moon shots. Yes, that’s plural. When I say “moon shots” I mean big, multibillion-dollar,25-year-horizon, game-changing investments. China has at least four going now: one is building a network of ultramodern airports; another is building a web of high-speed trains connecting major cities; a third is in bioscience, where the Beijing Genomics Institute this year ordered 128 DNA sequencers — from America — giving China the largest number in the world in one institute to launch its own stem cell/genetic engineering industry; and, finally, Beijing just announced that it was providing $15 billion in seed money for the country’s leading auto and battery companies to create an electric car industry, starting in 20 pilot cities.

Not to worry. America today also has its own multibillion-dollar, 25-year-horizon, game-changing moon shot: fixing Afghanistan.

If we both now create the market incentives for consumers to buy electric cars, and the plug-in infrastructure for people to drive them everywhere, it will be a win-win moon shot for both countries. The electric car industry will flourish in the U.S. and China, and together we’ll tackle the next challenge: using auto battery innovations to build big storage batteries for wind and solar. However, if only China puts the gasoline prices and infrastructure in place, the industry will gravitate there. It will be a moon shot for them, a hobby for us, and you’ll import your new electric car from China just like you’re now importing your oil from Saudi Arabia.

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