Three years ago, China was set for a green auto revolution. But the country's electricity-powered car industry is in stasis.
When Warren Buffett in 2008 bought 10% of Chinese car and battery maker BYD (acronym stands for Build Your Dreams), many thought it was the dawning of the Chinese electric vehicles (EVs) age. That "golden era" may yet arrive. Eventually. But in the interim, that dream has mutated into something of a nightmare ensnared in interest group politics and lack of clear strategies.
Take BYD, whose current fate--because it is considered a private sector leader in the EV game--reflects conditions of the embryonic industry at large. A string of negative press has not helped its prospects. For example, Bloomberg reported in September that the Shenzhen-based company is planning to issue nearly $1 billion of bonds as it comes under pressure to pay back debt and as sales of its sedans dwindle. Then in late October, BusinessWeek followed with a piece that said BYD America has not only delayed opening its operations, it has also under-delivered in the number of jobs it claimed it will create in Los Angeles. (The subtext here: "see, Chinese investment in the US does not create 'green-collar' jobs!") Of course, BYD's troubles in the U.S. are linked to its sub-optimal performance in the domestic Chinese market.
Indeed, BYD has likely sold more of its fully electric and hybrid vehicles to government entities than to actual Chinese consumers. Even with limited consumer subsidies, the E6 all-electric model will still cost around 250,000 yuan, or nearly $40,000--sticker shock for the average Chinese consumer in the market for a car that gets you from point A to B. And that's all on top of percolating questions over the soundness of its battery technology.
Beyond BYD, the rest of the industry appears to remain more or less in stasis, with more talk than action. In the department of exaggerated/misleading headlines, this China Dailypiece trumpets "Electric taxis to triple in Beijing next year". But what does that actually mean?
Beijing will increase the number of its fleet of electric taxis from 50 to 150 by May 2012, said an official from Yanqing, a county in northwestern Beijing where an electric car pilot operation is underway.
The program in Yanqing is the biggest of its kind in North China, said Wu Shijiang, vice director of the transportation bureau of the county. The 50 electric taxis in operation were developed by Beiqi Foton Motor Co Ltd, the biggest commercial vehicle manufacturer in China in terms of production and sales.
So that's 150 taxis among how many tens of thousands in Beijing? And reading between the lines, this "county official" is clearly promoting local business interests to garner the attention of higher-level officials. In the absence of an official nod from the Beijing government, it is not entirely clear whether these taxis will even be used at all.
The state of EV development in China is hardly solely the fault of industry or technology. The central government shares a large part of the blame, as it has sent confusing and vacillating signals that confound industry and confuse the market. Despite what initially appeared to be fervent support for EVs, the top leadership has poured some cold water on the sector with recent comments. Premier Wen Jiabao, speaking at a national science and technology association conference in May, all but admitted that the leadership itself is unsure about the future direction of the EV industry and that issues ranging from strategy to core technology still need to be resolved.
Wen's comments explain why the ten-year plan on alternative energy vehicles development, which was intended to be released this year, has remained under wraps. That plan was supposed to be one major pillar of China's 21st century industrial policy through 2020 and considered a "strategic emerging industry". It appears that major disagreements at the top are driven by a generous helping of bureaucratic interest conflicts. According to the Economic Observer, the Ministry of Industry and Information Technology is pushing for the simultaneous development of fuel efficient cars and EVs; the Ministry of Science and Technology is obsessed with promoting EVs from a narrow technological standpoint; and the National Development and Reform Commission seems to support hybrids as a transitional phase toward singular focus on EVs.
Industry is complicit in complicating an already complex situation. Given Beijing's incessant touting of the trillions of investment that will flow to new strategic sectors over the next five years, including EVs, automakers and even major state-owned enterprises (SOEs) do not want to be denied a piece of the money pie. The auto industry already formed its own EV association, only to be followed by the formation of an SOE-dominated EV group that includes the likes of State Grid and the national oil companies. Why the oil companies? Because the "big two"--CNPC and Sinopec--control the vast majority of downstream gas stations, they believe there is profit to be made in retrofitting gas stations to EV charging stations. No one wants to cede ground in case the money spigot starts flowing RMBs.
The government, in essence, is stuck. Walking back on the entire EV program is impossible. But full-throttle ahead at this point seems unrealistic given that no one can decide on a clear path forward. Moreover, the government is most likely correct in assessing that blind pursuit of this program with little foresight can lead to irrational exuberance like what happened with the wind industry.
I have not been particularly bullish on the Chinese EV sector's near-term prospects, and it's unclear to me whether developing an auto industry on par with Japan, Germany, or the US even makes sense from China's macro development standpoint. (In this respect, I agree with Zhu Rongji's harsh assessment of creating a domestic auto industry.) Introducing EVs into the Beijing taxi fleet may help mitigate horrendous and unpredictable air pollution, but they won't alleviate the worsening traffic bottlenecks that now regularly choke the city. Even if EVs reduce air pollution, charging them could mean more coal usage--since China is primarily a coal-powered economy--that offset whatever carbon reduction benefits derived from less gasoline consumption in the transport sector. But wait, there's also "indigenous innovation", and wouldn't leading battery technology go a long way toward that goal? Paradoxical objectives, pulled along by powerful interests in different directions, explain much of China's story these days.
Whatever the outcome of this uncertainty, one thing is clear: what was once hailed as a potential EV revolution in China is turning out to be more akin to an incremental evolution.
Damien Ma is a fellow at the Paulson Institute, where he focuses on investment and policy programs, and on the Institute's research and think-tank activities. Previously, he was a lead China analyst at Eurasia Group, a political risk research and advisory firm.
Why Nixon's former lawyer John Dean worries Trump could be one of the most corrupt presidents ever—and get away with it
Sometime early last fall, John Dean says he began having nightmares about a Trump presidency. He would wake in the middle of the night, agitated and alarmed, struggling to calm his nerves. “I’m not somebody who remembers the details of dreams,” he told me in a recent phone call from his home in Los Angeles. “I just know that they were so bad that I’d force myself awake and out of bed just to get away from them.”
Few people are more intimately acquainted than Dean with the consequences of an American presidency gone awry. As White House counsel under President Richard Nixon from 1970 to 1973, he was a key figure in the Watergate saga—participating in, and then helping to expose, the most iconic political scandal in modern U.S. history. In the decades since then, Dean has parlayed that resume line into something of a franchise, penning several books and countless columns on the theme of presidential abuses of power.
A history of the first African American White House—and of what came next
In the waning days of President Barack Obama’s administration, he and his wife, Michelle, hosted a farewell party, the full import of which no one could then grasp. It was late October, Friday the 21st, and the president had spent many of the previous weeks, as he would spend the two subsequent weeks, campaigning for the Democratic presidential nominee, Hillary Clinton. Things were looking up. Polls in the crucial states of Virginia and Pennsylvania showed Clinton with solid advantages. The formidable GOP strongholds of Georgia and Texas were said to be under threat. The moment seemed to buoy Obama. He had been light on his feet in these last few weeks, cracking jokes at the expense of Republican opponents and laughing off hecklers. At a rally in Orlando on October 28, he greeted a student who would be introducing him by dancing toward her and then noting that the song playing over the loudspeakers—the Gap Band’s “Outstanding”—was older than she was.
The Michigan billionaire’s confirmation hearing was heavy on partisanship and light on substance.
Donald Trump advocated on the campaign trail for a $20 billion federal school-voucher program. But during her confirmation hearing on Tuesday evening, Betsy DeVos, the president-elect’s choice to lead the U.S. Education Department, said school choice should be a state decision. She framed school choice as a right for students and families. And she said during the hearing that she was committed to strengthening public education for all students.
While the Michigan billionaire has backed charter schools and vouchers, which let families use public money to pay for private schools, DeVos would not, she said, try to force states to embrace school choice. But a number of organizations, largely Democratic, that had raised questions about DeVos’s commitment to expanding charters and vouchers and about her family’s financial holdings and religious causes were unlikely to find much more of the hearing reassuring.
Betsy DeVos, the nominee for education secretary, and Ryan Zinke, the nominee for interior secretary, will testify on Capitol Hill Tuesday.
Senate confirmation hearings continue this week, as Donald Trump’s inauguration approaches.
On Tuesday, Montana Representative Ryan Zinke, the nominee for interior secretary, will testify before the Senate Energy and Natural Resources Committee. And the Senate Health, Education, Labor, and Pensions Committee will hear from Betsy DeVos, Trump’s pick to head the Department of Education.
We’ll bring you the latest updates from Capitol Hill as events unfold. Also see our continuing coverage:
The president-elect has yet to name a secretary of agriculture, a delay that has caused controversy and illustrated the difficulties governing will pose.
Three days before Donald Trump is to be inaugurated as America’s new president, just one Cabinet agency lacks a nominee to lead it: the Department of Agriculture.
The pick has become mired in politics and drama, unsettling the agriculture industry and potentially imperiling Trump’s standing with some of his most ardent supporters—the residents of rural America. In the process, it has become a case study in the difficulty Trump will face as he begins to govern, as his sweeping promises and catchy slogans run up against competing interests.
Already, the delay in picking an agriculture secretary has caused alarm. “The lack of quick and decisive action on picking a new Secretary of Agriculture by the Trump administration has given rise to charges that agriculture is not a high priority for the incoming president,” columnist Gary Truitt wrote recently in Hoosier Ag Today. “While this may or may not be true, the fact that this was the last cabinet post to be filled has raised concerns and will produce some challenges for the new nominee.”
The first lady attacks Donald Trump by measuring him against the principles and ideals he fails to uphold.
It has become an unofficial anthem for the Clinton campaign: “When they go low, we go high.” The applause line originated with Michelle Obama, in the remarks she gave at the Democratic National Convention in July. Since then, Clinton has frequently invoked the phrase on the trail.
But what does it mean to “go high” in a campaign against a man like Donald Trump, whose xenophobic rhetoric and casual calls to violence represent a notable low-point in American politics?
“Going high” is how Clinton’s surrogates explained why she wasn’t nastier to Trump in the second presidential debate. While some pundits were puzzled that Clinton hadn’t delivered a death blow to her opponent, jumping on every opportunity to underscore his deficiencies and hypocrisies, her supporters had an explanation: She was focusing on actual issues and ideas. She was simply going high.
Is there room in the movement for people who morally object to abortion?
Updated on Monday, January 16 at 4:05 p.m.
Pro-life women are headed to D.C. Yes, they’ll turn out for the annual March for Life, which is coming up on January 27. But one week earlier, as many as a few hundred pro-lifers are planning to attend the Women’s March on Washington, which has been billed as feminist counterprogramming to the inauguration.
With organizations like Planned Parenthood and NARAL Pro-Choice America co-sponsoring the event, pro-life marchers have found themselves in a somewhat awkward position. What’s their place at an event that claims to speak for all women, but has aligned itself with pro-choice groups? With roughly a week to go before the march, organizers also released a set of “unity principles,” and one of them is “open access to safe, legal, affordable abortion and birth control for all people.”
In its fourth season the BBC show turned its main character into a superhero, and lost everything that made it special in the process.
This story contains spoilers through the most recent episode of Sherlock.
Christopher Nolan is a truly brilliant British creative talent, which makes it all the more ironic that his work seems to have (at least temporarily) unmoored two of that nation’s greatest fictional heroes. In dampening the palette and tone of superhero movies so spectacularly with his trilogy of Batman movies, Nolan created a domino effect that stretched all the way across the ocean, transforming James Bond from a louche, debonair intelligence agent into a tortured, self-medicating hitman, compelled by the death of his parents to hunt down a series of increasingly psychopathic villains. And, as “The Final Problem” revealed on Sunday, Nolan’s influence has similarly transformed Sherlock. A wry detective drama with a twist has turned into a superhero origin story, complete with agonizing childhood trauma, terrifying antagonists with improbable powers, and a final showdown in an ancestral home burned to the ground.
“Trump’s wall is already under construction,” Wole Soyinka says. “Walls are built in the mind.”
Wole Soyinka, the first African writer to be awarded the Nobel Prize in Literature, once fled to the United States from Nigeria. Now the fickle winds of politics are pushing him in the opposite direction.
Back in the 1960s, jailed for alleged associations with rebels amid the outbreak of the Nigerian Civil War, Soyinka composed protest poems on toilet paper in solitary confinement. “The man dies in all who keep silent in the face of tyranny,” Soyinka wrote in the collection of prison notes he later published. In the 1990s, the Nigerian strongman Sani Abacha confiscated Soyinka’s passport after the playwright urged Nigerians to stop paying taxes in defiance of military rule in the country. Soyinka managed to sneak out of his homeland and take refuge in the United States—a period he described to me as his “political sabbatical, because I never accepted, really, that I was in exile.”Abacha sentenced Soyinka to death in absentia. Soyinka’s crime was said to be treason.
Surfing the app on a trip back home can be a way of regressing, or imagining what life would be like if you never left.
My parents moved out of my hometown almost as soon as I left for college, and therefore I am obsessed with the idea of other people’s hometowns. Over any major holiday or break from a work schedule, hometowns become a sort of time travel, a way for people who have made adult lives elsewhere to return to their origin story.
Going home for the holidays can act as a kind of regression. Most of us know people, whether our friends, our partner, even our own parents, who suddenly turn into their teen or pre-teen self once they step foot in the house where they grew up. My mom used to say that whenever my dad got within 50 miles of his mom’s house, he suddenly became a teenage boy. Our hometowns become a kind of permission and hideaway, a place where we don’t have to be ourselves, where our actions don’t count and we get to be briefly less visible than we are in the adult homes we’ve made for ourselves elsewhere, the places where we expect ourselves to take action and achieve things and move upward through each day. For many of us, hometowns allow the luxury of a brief period of stasis, a rare few days of doing nothing.