The government in Beijing is now threatening the country's car industry to crack down on electric car projects. All in order to cope with falling demand.
China's automotive industry has virtually exploded over the past few years. In fact, the country's car brands have so much momentum that Chinese cars are now the most exported in the entire world.
Something the Japanese have otherwise regretted. But now there are indications that the communist regime in China's capital, Beijing, has had enough.
In any case, the government is now threatening the country's car industry with sanctions that will put a damper on the car brands' expansion, the Financial Times writes.
According to the newspaper, Deputy Minister of the Ministry of Industry and Information, Xin Guobin, says that the government will use 'forceful measures' to deal with the situation in relation to an 'insufficient' demand.
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At the same time, electric car projects without direction must be cracked down on. So-called 'blind programs', says Guobin.
The announcement must probably be seen in the light of threats from both the EU and the US when it comes to electric cars from China.
The Americans will completely remove support for electric cars with components that contain parts from or are produced in China and a number of other countries. Including Russia.
And in the EU, Commission President Ursula von der Leyen will have investigated whether the government in China distributes illegal state aid to the car industry in order to keep the prices of electric cars artificially low.
