Amazing "New Three Types" of Foreign Trade | Domestic New Energy Vehicles queuing up to "go global" China | China | Domestic

Beijing, August 11th - In the past, clothing, household appliances, and furniture were known as the "old three types" of China's foreign trade exports. Nowadays, electric passenger cars, lithium batteries, solar cells and other "new three types" products are popular overseas, and their export performance is very impressive. In the first half of this year, the total export of "new three types" products increased by 61.6%, driving the overall export growth of China by 1.8 percentage points. The sudden rise of the "new three types" has also become a vivid footnote to the improvement and upgrading of China's foreign trade.

When did the export changes of electric passenger vehicles, also known as new energy vehicles, occur? Why did it arise? Why can it stand out in export products? What are the stories of the export route?

Day and night never cease, ships come and go. At the Haitong Wharf in the Waigaoqiao Port Area of Shanghai, such busy scenes have become the norm. Liu Jietao, the head of the Single Ship Department of the Haitong Port Operation Department in Waigaoqiao Port Area, recalled that a few years ago, most of the vehicles transported here were imported from abroad. Due to the small number of exported cars, most of these ships came with full loads and left empty. Now, this has become the largest automobile export port in the country, with a large number of domestic new energy vehicles sailing from here to the world every day.

Liu Jietao: Since the beginning of this year, our dock has been operating at full capacity. On the most recent day, I counted over 9900 vehicles exported alone, with new energy accounting for almost half.

This busy port reflects the strong driving force of China's new energy vehicles going global. The momentum of going abroad is thriving, and it cannot be separated from the empowerment of smart production.

In a manufacturing factory at BYD, modern automobile manufacturing has long been a perfect fusion of mechanical, electronic technology, and artificial intelligence, rather than just a sofa and four wheels. Even the front and rear models on the same production line are different, allowing for the simultaneous production of multiple different models. Different robotic arms are programmed, coordinated, and welded precisely, achieving an accuracy rate of 100%.

When it comes to the emotional journey of the company over the years, Chairman and President Wang Chuanfu has had a lot of feelings.

Wang Chuanfu: In 2003, we entered the automotive industry with the dream of new energy, and various doubts and ridicule flooded our faces. At the 2004 Beijing International Auto Show, we exhibited three new energy vehicles for the first time, and when we walked through other booths, we saw only gasoline powered cars. At that time, no one believed that new energy vehicles could have a future.

Like Wang Chuanfu, for many new energy vehicle companies, no one would have expected that in just a few years, China's new energy vehicle exports have completed several leaps. Returning to 2019, according to the data released by the General Administration of Customs that year, the total export volume of new energy vehicles was 254000, which is considered an outstanding performance report. However, this achievement was soon refreshed in 2021, and in 2022, with the Russia-Ukraine conflict, the COVID-19 continued to cast a shadow on the world, resulting in insufficient supply of foreign new energy vehicles, while many countries actively introduced new energy vehicle guidance policies, such as government subsidies, low tariffs, etc., providing a golden window for China's new energy vehicles to go to sea. It is precisely from this year that new energy vehicles have entered a period of export prosperity. According to the statistics of the China Association of Automobile Manufacturers, the total export volume of new energy vehicles reached 1.12 million in 2022, which has given many car companies more confidence to go abroad.

This year, the export of new energy vehicles has reached a historic high. According to data from the China Association of Automobile Manufacturers, the growth rate of new energy vehicle exports from January to July exceeded that of traditional fuel vehicles, reaching 636000 units, a year-on-year increase of 1.5 times. As Wang Chuanfu said, now China's new energy vehicles have finally ushered in "spring".

Wang Chuanfu: Chinese brands are starting to become the protagonist, and new energy has provided a new acceleration for Chinese cars. We have mastered the core technology of new energy vehicles and a complete industrial chain, and the automotive industry is no longer stuck. We have the foundation and strength to create world-class brands.

Behind the continuous expansion of China's new energy vehicle brand overseas territory, it cannot be separated from enterprises increasing their innovation and strengthening their internal skills. Xu Haidong, Deputy Chief Engineer of the China Association of Automobile Manufacturers, believes that China's new energy vehicles can meet the diverse global market demands in terms of product appearance, quality, research and development, and production capacity.

Xu Haidong: The core benefit is the significant increase in competitiveness of Chinese automotive products. In terms of product quality control, supply chain management, and maintenance service system, it should be said that they have good capabilities.

At the same time, Chinese automotive brands have accurately grasped the early opportunities of new energy vehicle development, accelerating integration with intelligent networking to seize the opportunity.

In the new generation intelligent cockpit system of Chery Automobile exported overseas, Liu Jinping, Senior Manager of the Cockpit Product Development Department of the Enterprise Research and Development Institute, said that in this intelligent cockpit, drivers can conveniently control vehicle functions, adjust the interior environment, query road conditions and navigation information through voice and touch control.

Liu Jinping: We can easily start up in 3 seconds and perform facial recognition in 2 seconds. Currently, our mid to high end models are fully equipped with the latest intelligent cockpit system.

In the view of Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Conference, the continuous increase in export volume not only relies on technological innovation, but also on China's policy of vigorously developing new energy vehicles.

Cui Dongshu: The government has provided macro level support policies for exports, guiding enterprises to develop comprehensively in domestic and international markets. Several departments, such as the Ministry of Industry and Information Technology, have provided clear policy and directional support for the entire automobile export. Enterprises also promote our export market in a standardized manner according to the operation of the international market.

Nowadays, a large number of Chinese brands are beginning to emerge on the world stage, including not only old car companies, but also new forces in car manufacturing. Even some cross-border companies are eager to try. China's new energy vehicles are changing the passive situation of the automobile export market relying on exports to Asia, Africa, and South America. Even in developed countries such as Europe, America, and Japan, China's new energy vehicles have already gained a place. Susan Peterson, a car owner from Norway, expressed her experience and feelings towards Chinese new energy vehicles.

Susan Peterson: This car has enough space, is very comfortable, and is perfect for use in Norway. China's new energy vehicles have given me a very good experience.

At the same time, China's new energy vehicle companies are becoming more diversified in their ways of going global, gradually entering the stage of localization. Xu Haidong said that with the technology "moat" established over the years, Chinese car companies are starting to build a full overseas industry chain.

Xu Haidong: The overseas direct investment model will also enter a stage of rapid development. The main development direction in the future is still to make direct investment abroad, and the entire supply chain system also needs to be localized.

Since there is scenery on the sea, there will inevitably be storms and waves. Cui Dongshu believes that in order to achieve a true transformation from "Made in China" to "Chinese brand", car companies need to adapt to the local market, understand local culture and consumer demand, and better promote the "going global" of Chinese new energy vehicles.

Cui Dongshu: China's overseas exports are transitioning from short-term factors to medium - to long-term sustainable development. Overseas, we need to enable consumers to experience the advantages of our new energy vehicle intelligent cockpit, strengthen the construction of overseas after-sales systems, and drive the development of brand power through solid and effective products.