Reference News Network July 24 report - According to the website of the U.S. "Wall Street Journal" on July 22, China's demand for oil has driven global demand for decades. Now, a Chinese government initiative aimed at reducing reliance on oil is approaching a milestone, with expected peak oil consumption in China by 2027, followed by a decline.

The report states that the Chinese government has long been concerned that the United States and its allies might curb China's economic development by controlling overseas oil supplies to China. Therefore, China has invested heavily in strengthening domestic oil production and rapidly building a world-leading electric vehicle industry to reduce its dependence on imported oil.

Across China, fuel-powered taxis are being replaced by locally designed and produced electric vehicles. Last year, nearly half of the passenger cars sold in China were pure electric or plug-in hybrid electric vehicles.

The report says that from 2018 to 2024, China's domestic oil production increased by 13%, reaching about 4.3 million barrels per day. Although China's crude oil imports declined by about 2% last year, they have slightly rebounded this year as some Chinese companies increased their inventories.

The International Energy Agency predicts that China's oil demand may peak within two years.

The report states that in 2013, when China overtook the United States to become the world's largest net oil importer, its reliance on overseas crude oil seemed to continue to grow. This made China realize the need for an energy revolution to ensure national security.

The report points out that the Chinese government has taken a series of actions to promote the development of its emerging electric vehicle industry. Developing electric vehicles not only helps significantly reduce oil demand but also provides China with an opportunity: after years of difficult catching up with American and other regional automakers' internal combustion engine production technology, to surpass them.

By 2019, electric vehicles and plug-in hybrid electric vehicles accounted for only a small portion of the car market, and many Chinese consumers were still hesitant to switch vehicles.

The report says that the turning point came at the end of that year, when Tesla built its first factory in China with strong support from the Shanghai municipal government.

"Chinese consumers saw a truly attractive, futuristic electric vehicle for the first time," said Michael Dunn, CEO of Dun & Bradstreet, an automotive consulting company. "It was aesthetically pleasing, fast, and had all the elements that are highly appealing to consumers."

With the surge in electric vehicle sales, the Chinese government increased subsidies for companies building public charging stations. The government also encouraged new apartment buildings to provide infrastructure so residents could easily install their own charging stations.

As of May 2025, China had more than 14 million charging stations, nine times that of the end of 2020. In comparison, the United States has about 230,000 public and private charging stations.

China is promoting the use of electric buses to replace diesel buses in cities across the country.

In recent years, Chinese battery manufacturer CATL has developed rapidly and invested heavily in R&D. Now, CATL and BYD say that due to R&D spending, each of them has developed technology that can almost fully charge a vehicle in just five minutes.

The report points out that now, China's electric vehicle factories are symbols of its manufacturing strength. Chinese automaker Zeekr has achieved automation in welding processes. In a Zeekr showroom, a salesperson activated the massage function built into the driver's seat through voice activation, while an application on the car's video screen played classic Chinese songs.

According to data from research company Wood Mackenzie, in the United States, the growth of electric vehicle and hybrid vehicle sales is slower than in China, accounting for 20% of light vehicle sales at the end of last year, compared to 12% at the beginning of 2022. However, some dealers have high levels of electric vehicle inventory, indicating limited demand in the United States. At the same time, the U.S. Congress is considering eliminating the $7,500 tax credit for purchasing electric vehicles to allocate funds to other priority matters.

Original: https://www.toutiao.com/article/7530545001642721834/

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