For consumers, the government promised one of the most difficult things to obtain in China’s metropolises: a license plate. To combat pollution, the number of license plates issued each year is strictly limited. Beijing awards them through a lottery, but the chance of getting one in any given year is now 0.2%. Shanghai sells them at an auction with prices of over $14,000, more than the price of many domestically produced cars. Electric-vehicle plates are not only faster to get; they’re free.

2020 forecast from The Wall Street Journal

“The world needs a different way of powering the economy,” says Bill Russo, CEO of the Shanghai consultancy firm Automobility. “China recognizes it can’t be dependent on fossil fuels—it will choke on its own fumes.”

China’s breakneck speed has changed the strategies of traditional auto manufacturers. Many are now basing their global strategy for electrification on China’s industrial policy, but the momentum behind China’s companies is hard to match—and that’s a threat to the bottom line for Ford, General Motors, and European carmakers.