The world’s auto manufacturers have spent billions to develop a lineup of plug-in hybrid and fully electric vehicles. Meanwhile in China, the government has supported the development of the “strategic emerging industry” for more than a decade, facilitating massive resource procurement, manufacturing, charging and distribution mechanisms, all to serve the largest electric vehicle (EV) consumer market. Beijing’s sights are now set on stimulating its economy at home, with low-cost plug-in hybrids and EVs, and exporting overproduction to conquer consumer markets in Europe, Asia and elsewhere. Western governments and manufacturers are on the defensive and just beginning to respond – but must do so quickly before Chinese-made new-energy vehicles become fully entrenched around the world.