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Electric cars in China

Panasonic braces for all-out battery war with Chinese rivals

Beijing policy change set to give foreign makers a better competitive edge

Chinese carmaker BYD showcases one of its electric models at the Beijing Motor Show. (Photo by Akihide Anzai)

TIANJIN, China -- Japanese industrial conglomerate Panasonic is gearing up for a decisive battle for dominance of China's huge electric-vehicle battery market against fast-growing local rivals, as an impending policy shift by Beijing appears set to improve the competitive environment for foreign makers.

Panasonic is the world's largest supplier of electric-vehicle batteries and plans to remain so, despite what is sure to be a tough challenge from Chinese makers that are rapidly expanding production capacity.

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