China’s Guigang City: The New South Asian Hub For NEV Manufacturing
Guigang City, in south China’s Guangxi Province has been focusing on developing an industrial cluster of new energy vehicles (NEVs) and electric bikes (e-bikes), and promoting their use to new markets across the Belt and Road Initiative.
Guangxi is close to Vietnam and the ASEAN markets, while exports can also be shipped directly to other destinations in South Asia, Europe and Russia.
The comments were made by He Luchun, the Guigang Party chief, at the 2022 China Guigang E-Vehicle International Forum, which was held last week in Guangxi’s capital city of Nanning. Guigang’s intended production capacity means the development of a 667 hectare industrial park with an annual NEV output value of 100 billion yuan (US$14.1 billion). Construction has already begun.
To date, Guigang has incorporated over 100 businesses, related with the NEV industry, including e-bike producers such as Aima, TAILG and OPAI, as well as components and parts manufacturers. More than 50 brands are now in operation. Gangbei, the regional district in Guigang earmarked for this, already has an annual production capability of 5 million e-bikes, 500,000 electric tricycles and 5 million sets of e-bike parts, forming a relatively complete industrial chain.
In addition to serving the domestic market, Guigang is also looking to explore the global markets, given the opportunities brought about by the Belt and Road Initiative, the Regional Comprehensive Economic Partnership (RCEP) the INSTC and other trade corridors.
On September 16, the first 75 of a total order of 450 e-bikes were shipped to Thailand from Guigang Port. Valued at US$243,000, this export marks an important step for Guigang-made e-bikes to enter ASEAN markets. China has a Free Trade Agreement with ASEAN.
The NEV market in China is supported by subsidies as well as long standing tax breaks. Interested foreign investors in the NEV industry should refer to China’s policies in the industry. Investors may contact Dezan Shira & Associates china@dezshira.com for advise in establishing manufacturing operations in China, as well as advise on exported these products to markets throughout ASEAN and beyond. The practice has 29 offices throughout the South Asia region.
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