China’s strategy of establishing joint ventures with Western automobile technology companies was driven by the desire to learn and build its manufacturing capabilities, specifically for its own growing market. For Western corporations, these joint ventures offered something irresistible: access to the world’s largest and rapidly expanding consumer base. The allure of tapping into China’s market was too strong for many to refuse.
For years, despite these joint ventures, China struggled to master automobile manufacturing technology, falling far behind European, Japanese, and American car companies. The dominance of these Western firms went unchallenged for a long time, with one American executive famously remarking that they were making more money in China than they could have imagined, precisely more than God. Complaints of technology theft were almost non-existent in those early years, when Western corporations reigned supreme over the Chinese market.
Then came the rise of electric vehicles.
The key to understanding China’s breakthrough lies in what the heart of a vehicle is: its propulsion system. While China had made significant strides in mastering how to build the vehicle chassis, it still relied heavily on imported internal combustion engines (ICE) from the western industry leaders of the time. However, China had another advantage up its sleeve—its expertise in battery technology, which has become the new heart of an automobile when combined with an electric motor.
This expertise came about almost by necessity, others would say luck. China’s rapid industrialization had created significant pollution problems, forcing the country to find cleaner alternatives. Electric vehicles (EVs) offered a solution, particularly for polluted megacities like Beijing. China’s push for cleaner air accelerated its development of EV technology, even as legacy carmakers in the West dismissed electric vehicles as a passing trend.
The COVID-19 pandemic in 2020, with its global lockdowns, further crystallized China’s commitment to this cleaner future. The sudden drop in pollution during lockdowns showed the potential for unpolluted, cleaner cities, and there was no turning back. China rapidly accelerated its EV industry to reduce its reliance on traditional ICE vehicles, mainly produced by Western firms.
Even though Western companies, led by Tesla, were initially pioneers in EV technology, legacy carmakers’ refusal to take EVs seriously became their undoing. Meanwhile, China was perfecting an often overlooked component: the battery. Its expertise in battery technology gave China a major advantage, turning the electric vehicle’s battery and motor into the new “heart” of the modern automobile.
What’s more surprising is how proficient China has become in developing the software that controls these vehicles—an area where western dominant firms like Volkswagen have faltered.
Ironically, the West, long seen as the pioneer in software and technological innovation, has struggled to compete with China in this new automotive landscape. Western politicians have levied various accusations against China, framing the narrative around intellectual property theft. However, these complaints seem more politically motivated, masking the inability of legacy Western carmakers to adapt to the rapidly evolving industry.
Against all odds, and despite years of underestimation, China has established itself as a formidable player in the global automobile industry—thanks not only to the knowledge it gained through joint ventures but also to its mastery of overlooked technologies like batteries, motors, and software.
China has not only caught up—it has changed the game.
For Africa, it has to take note – a deliberate investment in key technologies while pushing the limits of what is possible.
Africa must be forced by its sons to stop being in a subordinate position and become a player on the global stage in the most important technologies.