Companies in the Yangtze River Delta, one of China's most economically vibrant and innovative regions, are driving the development of new energy vehicles (NEVs).
The Yangtze River Delta region, which takes up only 4 percent of China's landmass, contributes about 25 percent of its total GDP and one-third of its foreign trade and investment. The region encompasses the provinces of Jiangsu, Zhejiang, Anhui, and Shanghai Municipality.
Founded in 2014, Hesai Technology is a global leader in automotive LiDAR systems based in Shanghai. At present, it supplies about one-third of all automotive LiDAR systems used around the world. LiDAR, which stands for Light Detection and Ranging, helps autonomous driving systems to navigate roads safely.
A LiDAR device emits millions of light pulses every second and creates 3D maps based on the light pulses reflected back from nearby objects. By measuring how long it takes for each pulse to come back, the LiDAR device calculates distances and will automatically trigger the brakes if it detects that something is too close.
In heavy rain or fog, normal cameras may struggle to see clearly and computers might fail to recognize unusually shaped objects, but a LiDAR device helps to keep things safer under such circumstances, according to industry insiders.
"LiDAR is not to replace cameras. Camera can solve many problems, but camera is very reliable on external lights. A LiDAR is like a seat belt, having better LiDAR and more LiDAR will save lives," said Andrew Fan, chief financial officer of Hesai Technology.
Valuing the unique advantages of the Yangtze River Delta, the company's research, development and production are all concentrated in the region, according to Fan.
"Yangtze River Delta has its own unique competitiveness in terms of client bases, supply chains, human resources and, more importantly, the business environment here," Fan said.
Taicang is a small city neighboring Shanghai in Jiangsu Province which has been home to German auto parts giant Schaeffler for 30 years.
"Here in Taicang, we achieved what we call the 'three 100s'. Within 100 kilometers, we can source most of our raw materials. Within 100 minutes, we can reach to most of our customers. And we have over 100 suppliers located nearby," said Xi Pengchong, director of Taicang Campus Schaeffler (China) Co., Ltd.
The Yangtze River Delta has over 17,300 kilometers of expressways and more than 14,600 kilometers of railways, connecting almost every city and county in the region. Through this network, both Schaeffler and Hesai's products can quickly reach one of their main customers 150 kilometers away, said Zeekr Group, a Chinese EV rising star founded in 2021.
Located in Ningbo City of east China's Zhejiang Province, Zeekr's main manufacturing plant covers an area over 133 hectares and can produce up to 300,000 cars a year.
"This kind of ecosystem helps us save time. It used to take over 10 days to make a car but now it can be done as little as two days from order to delivery," said Zhao Chunlin, vice president of Zeekr Group.
At present, 75 percent of the company's component suppliers are located within a four-hour drive.
"The shorter the transport distances are, the less the inventory volumes are. This helps us to lower the logistic costs," said Zhao.
Yangtze River Delta companies drive NEV development
China's push toward a greener future is once again in the spotlight at this year's annual political "two sessions", as lawmakers are reviewing a draft ecological environment code, a significant step toward establishing a comprehensive legal framework for ecological protection.
The draft code was submitted on March 5 to the ongoing fourth session of the 14th National People's Congress (NPC), China's top legislature, for deliberation.
Once adopted, it will become China's second formal statutory code, after the Civil Code, which was adopted in 2020.
The rule of law has been continuously strengthened to support the country's green progress. China already has more than 30 laws related to environmental protection, along with over 100 sets of administrative regulations and more than 1,000 sets of local rules.
The latest legislative move comes amid China's historic gains in ecological conservation over the past decade or so. Championing green development, the country has recorded the world's fastest growth in forest resources and afforestation, led globally in renewable energy development, and achieved one of the fastest national reductions in energy intensity worldwide.
The 1,242-article draft has five chapters, covering areas including pollution control, ecological protection, and green and low-carbon development.
Scholars involved in drafting the legislation say the code goes beyond broad legal principles. It is also designed to address environmental issues that affect people's daily lives.
"Electric vehicles are becoming very common in China. My family has one. We all think it environment-friendly. But have you ever thought about this question: how do we deal with the first generation of EV batteries after they expire a few years later? The same goes for wind turbine blades and solar panels," said Ding Lin, assistant professor of the Renmin University of China.
China's environmental progress has drawn global attention in recent years, from improving air quality to expanding renewable energy. Yet amid geopolitical tensions and economic uncertainty, some observers have questioned whether the country will maintain the same pace of green transition.
"Last year during the COP30, even some friends who are very familiar with China asked me whether China will continue its green development path. I told them we have gradually worked out new policies. We have a very clear direction and goal. In a world full of uncertainties, we are providing the most certainty," said Wang Yi, an NPC deputy from east China's Zhejiang Province and professor of the Chinese Academy of Sciences.
In a country pursuing modernization, taking the time to codify environmental laws sends a clear message: economic growth and environmental protection are not a trade-off to be managed, but a commitment to be upheld. For China, a beautiful environment is not a luxury for the future, it is a right for the present, and a responsibility to the next generation.
"This code reflects China's vision of harmonious coexistence between humanity and nature. It shows how development and environmental protection can move forward together," said Lyu Zhongmei, vice chair of the NPC Environmental Protection and Resources Conservation Committee.
China will accelerate the green transition across the board and cut carbon dioxide emissions per unit of the GDP by a total of 17 percent in the 2026-2030 period, according to a draft outline of the 15th Five-Year Plan (2026-30) for national economic and social development submitted to the NPC for deliberation on March 5.
Chinese lawmakers review draft ecological environment code in major green legislative push
