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Electric cars in China

China plans homegrown supply chain for green cars by 2035

Developing into auto technology powerhouse envisioned amid US friction

China's policy to boost production of electrified vehicles will likely be a boon to Japanese automakers such as Toyota Motor.

BEIJING -- The Chinese government said Monday it will dramatically boost the number of electric, plug-in hybrid and fuel cell vehicles on the country's roads over the next 15 years, with production to be fueled by a homegrown supply chain.

Under the plan released by the State Council, so-called new energy vehicles would account for half of all new vehicles sold in 2035. They will include smart cars that can connect to the internet, according to the blueprint.

China, the world's biggest auto market, will carry out the national strategy by realizing technical innovations in batteries, drive systems and other core components. This plank takes into account the potential for long-term frictions with the U.S.

The plan lays out China's transformation from a "major automobile country" that leads in auto sales to a "major automobile power" dominant on the technological front.

The state policy to drive the growth of new energy vehicles is anticipated to be a boon to Japanese automakers and suppliers. At the same time, Japanese manufacturers could come under pressure down the road to relocate production of core components.

Japanese players will likely stake out strategic approaches that allow them to maintain technological superiority while helping to expand the Chinese industry.

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