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China Drops EVs From 2026–2030 Strategic Industries in Policy Pivot

Officials shift state backing to frontier technologies, with car demand to be propped up by easing purchase limits.

Overview

  • Xinhua published the draft 15th five-year plan that prioritises quantum technology, bio-manufacturing, hydrogen energy and nuclear fusion, leaving new energy vehicles off the strategic list for the first time in over a decade.
  • Automobiles were flagged alongside housing in the draft, with a call to remove purchase restrictions to support consumption.
  • President Xi Jinping cautioned against regions rushing into the same “new productive forces,” urging a more measured approach to investment.
  • Analysts say the exclusion indicates EV subsidies will fade and industry outcomes will rely more on market competition rather than broad state support.
  • The shift comes as China’s EV sector faces overcapacity, price wars and export uncertainty, with final details of the plan due at the March parliamentary session.