Electric Vehicles: Chinese Share of Market

Gregory Stafford, the Conservative MP for Farnham and Bordon, asked the Minister for Industry, Sarah Jones, what steps the Department is taking with Cabinet colleagues to mitigate the potential risks posed by the Chinese share of the electric vehicle market. In her response, the Minister acknowledged that China's role in the automotive industry is growing, which brings both risks and opportunities. She stated that the government is working closely with other departments to analyze the impact on the UK and that they will take action where necessary, ensuring that any action taken on Chinese electric vehicles is the right one, including for the UK industry. In a follow-up question, Stafford asked the Minister to outline the Department's wider strategy on challenging China's global monopoly on critical minerals, including lithium, much of which is extracted by forced labour. The Minister reiterated that the government is working closely with colleagues across government to ensure they have the right intelligence and can make the right decisions. She noted that other countries are introducing tariffs and taking a range of measures, but the UK's sectors are different from those of the US or the EU, so the government needs to respond in the right way when it comes to electric vehicles. The Minister acknowledged the importance of addressing critical minerals and supply chains, and ensuring the UK is using supply chains from countries with which it wants to have a different relationship, such as the solar taskforce. Greg Smith, the Conservative MP for Mid Buckinghamshire, then intervened, stating that the government's actions are different from what they said before the election. He criticized the government for dithering on the issue of Chinese dominance in the electric vehicle market, while other countries are taking action. The Minister responded by stating that the previous government, in which Smith's party was in power, saw inward investment from China grow over four times since 2014, and she would not take lessons from him on these issues. She also stated that the automotive industry has not asked for the actions suggested by Smith, and the government is monitoring the situation and will intervene if necessary, recognizing that the UK's economy and industry differ from those of other countries.