Homepage / Asia / China has one big advantage in the race to build the car of the future
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Asia

China has one big advantage in the race to build the car of the future

China could take the lead in the self-driving car market because of its ability to make regulatory decisions relatively quickly, according to an investment advisory firm.

Driver-less technology is one of several sources of disruption that traditional automakers are facing today. While many U.S. start-ups and large companies have been extensively working on this new technology, there’s another important factor to consider in the nascent market, Michael Dunne, president at Dunne Automotive, told CNBC.

“There’s more to it than just technology. Regulation matters a lot,” Dunne said at the sidelines of Fortune Global Forum in Guangzhou, China.

Given how new driver-less technology is, regulators will have to do a lot of work to firm up laws that will govern autonomous driving in the future.

That, according to Dunne, is where China and Chinese companies have an edge because of how the decision-making process works in Beijing. He said that the “Chinese government can, and will, facilitate autonomous driving sooner than we will in the United States, for example. China could take the lead very easily because of this.”

“It’s not without precedent here in China that they make a decision and tomorrow morning at 6 a.m., the expressway from Guangzhou to Shenzhen is now autonomous-only. Any objections? Okay great, here we go,” he explained as an example of how quickly decision-making could work in the country, which is governed by a single political party.

At the same time, Chinese companies are also catching up with their Silicon Valley counterparts when it comes to developing more sophisticated driver-less technology. That is being done through major Chinese investments into California to conduct research and development around autonomous technology, Dunne said.

For example, earlier this year, Uber rival Didi Chuxing set up a research and development center in Mountain View, California. A team of scientists, engineers and researchers will look into the use of artificial intelligence in security and intelligent driving technologies, the company said.

“I’m talking about billions of dollars, thousands of employees — getting first-class talent from Apple, Google, and Tesla to say ‘Hey we’ll do our R&D in California, design in California, we’ll commercialize back in China.’ That’s the formula to look for,” he added.

Another source of disruption to traditional automakers is the growing popularity of electric or hybrid vehicles. In China, Dunne said, the demand for electric vehicles will first come from the commercial sector, then from individual drivers.

“We will see demand, especially in taxi fleets. There’s tens of thousands of taxis running in cities in China,” he said. “Those will go electric first. Buses and delivery vans, watch the commercial space … there will be demand from enterprises first, individuals later.”

In September, China set a 2019 deadline for automakers to meet green-car sales targets, according to Reuters. Car makers will have to amass credits for so-called new-energy vehicles that will need to be equivalent to 10 percent of annual sales by 2019, China’s industry ministry said, Reuters reported.

“The thinking from the Chinese government is you won’t make money on electrics for the first five years but you’ll subsidize electric demand through your sales of conventional gasoline engine cars,” Dunne said. “The automakers, themselves, will subsidize this movement.”

China wants to set goals for electric and plug-in hybrid cars to make up at least a fifth of domestic auto sales by 2025, Reuters reported.

Dunne said both local and foreign automakers — some of which have formed new joint ventures in the space — will likely see profitability in the electric vehicle market around 2021 and 2022. That is because automakers are still waiting for the cost of batteries to go down.

“Until then, it’ll be a war of attrition. Who’s the last man standing? That’s what it’s going to be about,” Dunne said.

Chinese firms, however, have rapidly been making deals to secure supplies of lithium, which is a vital component used in batteries for electric vehicles.

According to Dunne, the demand for electric vehicles in China will start “on the very low end,” and he predicted that companies inside the country might even produce electric vehicles costing less than $15,000.

At the same time, there could also be some demand from the “very high end” owing to the fact that China “happens to have the largest luxury car market in the world,” Dunne explained.

Source: cnbc china
China has one big advantage in the race to build the car of the future

Comments are closed.