A Tesla Model S electric vehicle is displayed during an exhibition in Zhengzhou city, Henan province, China, 4 November 2018.
As a Follow up to what President Joe Biden promised at the US-ASEAN Special Summit earlier this year proposed the establishment of a US-ASEAN Electric Vehicle Initiative at this month’s US-ASEAN Summit in Cambodia.
Announcing the initiative, a flagship initiative of the US-ASEAN Transportation Dialogue Partnership, Biden looks forward to working with his ASEAN counterparts to create an integrated electric vehicle (EV) ecosystem in Southeast Asia. Specifically, the initiative approach on the development of the region’s EV infrastructure, the adoption of EV throughout the region, and the development of EV solutions and technologies for the region. In addition, the United States will also help ASEAN to create an ASEAN roadmap for the implementation of electric vehicles.
First, the Initiative must be understood as an extension of the internal agenda of the Biden administration. Biden’s passion for and support for American-made electric vehicles was evident even during his presidential campaign. In addition to stating that electric vehicles are the future of the American auto industry, he fiance take a more active role in supporting the development of American electric vehicles. Recently, Biden he even declared that electric vehicles were an integral part of restoring American greatness.
Since taking office, Biden has taken concrete steps to promote the production and adoption of electric vehicles in the United States. with bipartisanship Investment in Infrastructure and Jobs LawFor example, the Biden administration can invest $7.5 billion in electric vehicle chargers, more than $7 billion in the supply of critical minerals and other components that are necessary for the production of electric vehicle batteries, and more than $10 billion in transportation public and clean school buses. Although there are no articles in the recently passed Chip and Science Act that specifically address electric vehicles, the Act Will also stimulate their development, since enough and advanced chips are critical to the future of electric vehicles. In doing so, the Biden administration is attempting to create the foundation for an electric vehicle manufacturing boom and an electric vehicle supply chain in the United States.
Given the enormous For Southeast Asia market potential, the US-ASEAN EV Initiative can facilitate EV trade between the US and the region and create more export opportunities for EV manufacturers that have factories in the U.S. Working with ASEAN is also essential for the US in the sense that the regions Lower labor costs and an abundance of minerals that are critical to electric vehicle production will help the US establish a more secure supply chain.
Second, the Initiative can also serve as part of the United States’ strategy to compete with China for world leadership in electric vehicles. The Biden administration has long been dissatisfied with the US electric vehicle market share, particularly compared to China. Since then she has promised”overtake china” in the electric vehicle industry. In recent years, an increasing number of Chinese EV manufacturers have entered Southeast Asia and are considering business expansion in the region. For example, BYD, Great Wall Motor (GMW), Hozon, and Airways all have delivered their electric vehicles in Southeast Asian countries. SAIC-GM-Wuling (SGMW) Y BYD have respectively located their own electric vehicle productions in Indonesia and Thailand. Also, BYD has partnered with the Singapore Science, Technology and Research Agency on research and development of an EV system for public transport.
It seems that China’s efforts have already yielded some positive results. Data shows that the market share of Chinese EV manufacturers in Thailand is expected to rise from 58% in 2021 to around 80% this year. With the new initiative, it appears the Biden administration is looking beyond the cars themselves when competing with China in Southeast Asia; Its goal is to shape the region’s EV ecosystem with US solutions and technologies, from EV production to EV infrastructure creation, such as charging stations.
Shortly after the Biden administration decided to launch the US-ASEAN Electric Vehicle Initiative in Cambodia, the Chinese state media Global Times commented that it was simply a “symbolic gesture” that the US was using to woo ASEAN instead of cooperating to “achieve a truly prosperous and peaceful ASEAN”, as it claimed was China’s goal.
But the US promises to Southeast Asia are not likely to be matched by the commitment of resources. Addressing the US-ASEAN Summit in Phnom Penh this month, Biden Announced that it had requested $825 million for all types of assistance to Southeast Asia by 2023, which is a drop in the bucket in terms of the region’s needs. Although Biden may afford more EV projects in Southeast Asia, it’s unclear how much follow-through there will be.
Regardless of the outcome, the announcement of the initiative will no doubt intensify the already intense EV competition in Southeast Asia. While the Biden administration is taking a more protective Y looking in attitude towards its allies regarding electric vehicles, the initiative is one of the first attempts by the US to cooperate internationally on electric vehicles, along with another recent agreement with Mexico. Since the US “compete vigorouslyWith China, the EV industry, especially in Southeast Asia, is likely to soon become another hotspot of Sino-American competition.