[THE INVESTOR] The Chinese government has decided to suspend consumer subsidies for electric vehicles using batteries produced by two Korean companies Samsung SDI and LG Chem.
The decision is expected to become a huge blow to the Korean duo that has poured considerable resources into the Chinese market in recent years, including building new battery-making plants.
Samsung SDI's EV battery plant in Xian, China
According to news reports on June 20, the Chinese government announced a total of 31 companies subject to EV subsidies but Samsung and LG were not included into the list.
The two companies said they plan to submit applications again. If they fail to get certifications finally, they would not be able to receive subsidies from January 2018.
By Lee Ji-yoon (firstname.lastname@example.org