·Japanese media: Sino-US friction or expansion to the frontier of the car

General Motors (GM) recently revealed that its environmentally friendly vehicle batteries will all be supplied by South Korea's LG Chemical. In the field of pure electric vehicles (EV), GM is currently using a battery from a US startup, but Chinese companies have acquired the startup. "Nikkei Business News" reported on May 27 that GM decided to exclude Chinese companies' products because of concerns about technology outflows to China. This move has the potential to create new friction points between China and the United States in the frontier technology of automobiles.

According to the report, GM's "Spark EV" launched in the United States in 2013 used batteries from the A123 system, a startup of the Massachusetts Institute of Technology. However, with the 2015 model launched in the second half of 2014, it will stop purchasing from A123. It will be converted to a battery produced by LG Chemical of Korea, which is used by the eco-friendly car "Bolt" which is close to the plug-in hybrid (PHV) launched at the end of 2010.

Chuck Russell, GM's chief engineer for the A123 system, said that "there should be an independent technology for using nanomaterials to increase energy density." In addition, the A123 system has received financial support from the Obama administration's environmental policy “Green New Deal”.

GM excluded the A123 system from the purchase target because the company has been acquired by Chinese companies.

In the middle of 2012, when GM was developing pure electric vehicles, the A123 system was in financial difficulties. In August of the same year, it was announced to be sold to China's large auto Parts company, Zhejiang Wanxiang Group. However, the US Congress’s concerns about technology outflows to Chinese companies have continued to rise, and the acquisition once returned to its original point. As a result, the A123 system was forced to undergo bankruptcy restructuring.

At this time, Wanxiang once again offered to purchase the A123 system. Although the US Johnson Controls and NEC also participated in the bidding, Wanxiang, which promised to provide huge funds, finally won the bid. The acquisition was subsequently completed in January 2013.

Although Wanxiang is a private enterprise, it has received financial support from the Chinese government and is planning to enter the field of pure electric vehicles. When talking about changes in battery purchase targets, GM stakeholders acknowledged that "technology is likely to flow out to Wanxiang is also one of the reasons." The battery and the corresponding control technology can be said to be the core technology of the eco-car equivalent to the gasoline engine.

GM's plan is to increase the annual sales of eco-cars, which are mainly plug-in hybrids and pure electric vehicles, to 500,000 units by 2017, equivalent to 5% of current global sales. While expanding its sourcing to LG Chem, GM will also strengthen its battery plant in Michigan.

In terms of industrial friction between China and the United States, Hunan Sany Group, a large Chinese construction machinery company, previously purchased a wind power construction plan in Oregon from a Greek power company, and Obama issued an order to stop construction. Sany Heavy Industry sued Obama for this. In addition, Huawei's large-scale communications equipment enterprise Huawei technology was excluded from transactions with the US government and large US telecommunications companies on the grounds of the possibility of cyberattacks. Recently, it has increased its vigilance against the massive inflow of Chinese-made steel products.

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