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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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China’s EV Success Story: Lessons from the World Leader

China has surged ahead in the electric vehicle (EV) race, leaving the US and Europe trailing in its wake. The nation's success wasn't solely due to heavy government investment. The real insights lie in how industrial policy fueled this remarkable ascent.



The Tesla Spark

While the Chinese government poured resources into EVs, recognizing their environmental and economic potential, the pivotal moment came with Tesla's entry into China in 2019. Tesla’s presence ignited consumer enthusiasm and catalyzed the rapid development of a new EV supply chain.

Innovation and Competition

Innovation quickly took center stage. A plethora of EV companies emerged, each vying to outshine the others with cutting-edge designs and technologies. Not all survived, but those that did became more resilient and competitive. Today, China's EV market is renowned for its intense price wars and fierce competition.

Lessons from Beijing

China's industrial policy approach in the EV sector contrasts starkly with its less successful attempts to build a domestic aircraft industry to rival Boeing and Airbus. Rather than anointing specific "national champions," China embraced a "let a hundred EV makers bloom" strategy, fostering widespread competition.

BYD and Others Leading the Way

Companies like BYD have thrived under this model. BYD offers electric cars with innovative features, such as rotating touchscreens, for just $10,200. Li Auto’s spacious SUVs, equipped with top-tier entertainment systems, have also found favor. Even Xiaomi, better known for smartphones, has entered the EV market with its SU7 model.

Beyond Cars: Batteries and More

China’s influence extends beyond vehicle manufacturing to battery production. Local giants BYD and CATL now dominate the global EV battery market, a dominance built on early government policies that supported local manufacturers.

The Bigger Picture

China’s EV success isn't just about subsidies; it’s about cultivating a demand-driven market, investing in infrastructure, and encouraging private sector competition. Unlike the US, which largely left the fate of EVs to market forces, China’s government actively created an environment conducive to EV growth.

Looking Ahead

The EV industry is poised to significantly boost China’s economy, potentially contributing 2.7% to GDP by 2026. However, challenges remain, including tariffs from the US and the European Union that hinder Chinese EVs' access to these markets.

Final Thoughts

China’s EV story is a masterclass in fostering innovation and competition. It demonstrates that while subsidies are helpful, they aren't a panacea. Success stems from creating an environment where companies can innovate and compete, allowing the best to rise to the top.

China's experience underscores that the real victors will be those who nurture a supportive environment for innovation. As Scott Kennedy from the Center for Strategic and International Studies puts it, “Governments that create an environment for innovation will allow breakthroughs by companies to eventually find a place in the market.”

China's journey offers valuable lessons for other nations striving to lead in the EV revolution. It’s not just about financial support but about creating the right conditions for innovation and competition to flourish.

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