China Boosts EV Subsidies, Curbing Oil Demand as US Grid Expansion Looms

Jul 18, 2025
Edward Conard
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Summary

China boosts electric vehicle subsidies, curbing oil demand, while US grid expansion looms to meet forecasted 2.5% annual increase in electrical demand through 2035.

Key Points

  • China is reducing its oil demand through massive subsidies for electric vehicles
  • China's share of global manufacturing is likely near its peak as growth has slowed from 1.5% to 0.5% between 2010 and today
  • US electrical demand is forecasted to increase at a 2.5% annual rate through 2035, requiring significant investment in grid capacity expansion

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