China’s electric vehicle industry hit hard by policy shift as Beijing turns toward hydrogen fuel

China Daily Mail

China’s electric vehicle (EV) industry has been booming for nearly a decade, with generous subsidies from the Chinese government and state-sponsored marketing efforts.

However, the research and development (R&D) subsidies are now shifting to vehicles with hydrogen fuel cells, a new technology that, according to industry, is cleaner and more efficient than lithium battery-run cars.

Current EV automakers in China will have to face the cruel reality: The EV industry will soon suffer financial losses with the disappearance of state support.

Chinese Regime Shifting Subsidies

On March 26, China’s Ministry of Finance, Ministry of Science and Technology, and other agencies jointly announced changes to the subsidy program for lithium battery-powered electric cars, slashing subsidies by 67 percent.

Electric cars with driving ranges of 400 kilometers (250 miles) and above will be cut by half, to 25,000 yuan ($3,700) per vehicle, from 50,000 yuan. And to qualify for any subsidy, electric…

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