Sky's Ed Conway explains how the rest of the world was caught napping in the electric vehicle race, which means our car prices and auto industry jobs are within China's grip.

Summary

China has become the world’s largest car exporter by dominating electric vehicle (EV) production, surpassing traditional carmakers in Europe, Japan, and the U.S.

This shift stems from China’s heavy investment in battery technology, supply chains, and generous subsidies, enabling it to produce cheaper EVs, like the BYD Seal, compared to Western competitors.

Europe and America, reliant on outdated internal combustion engine expertise, have struggled to adapt to this disruptive innovation.

Many nations are imposing tariffs on Chinese EVs, but without robust domestic battery infrastructure, Western car industries face mounting challenges as the EV transition accelerates.