Related and supporting industries: With more than 7,500 small and medium-sized enterprises, China's automotive OEM market is still highly fragmented (China Automobile Manufacturers Association (CAAM), 2007). Around 70% of the world's 100 largest automotive equipment manufacturers have subsidiaries in China, with activities scattered across this huge country, as most OEMs (Original Equipment Manufacturers) have developed their own supplier network around them (Kasperk, 2010 , p.7). . Initially, in accordance with government regulations, market entry for foreign OEMs was only possible through joint venture agreements with Chinese partners, which helped suppliers significantly improve the quality of their products. Some of these suppliers have managed to achieve a level of quality comparable to that of German suppliers in product segments with low and medium technological sophistication. However, the majority of Chinese automobile OEMs still suffer from low R&D activities and low production volume due to small-scale production (Kasperk, 2010, p. 7). Only a few are able to offer complete modules or systems, with most offering simple replacement parts like tires, fuel tanks, and bearings (Kasperk, 2010, p. 7). Chinese automotive suppliers account for a market share of less than 10% when it comes to sophisticated product segmentation. The Chinese government is implementing concentration policies that help suppliers develop into complete module producers or system suppliers instead of just supplying ordinary spare parts. In addition, a large number of Chinese suppliers are increasing their R&D spending and cooperating with universities. Even though the distance between Chinese and global suppliers with respect to technology and quality standards is quite large, C...... middle of article ......I Discussion Papers Information Systems innovation and policy analysis. Hardin, G. (1968). “The tragedy of the commons”. Jimenez, J.P. (2012). Policy options for promoting electric vehicles: a review. Institute for Applied Economics Research. Kasperk, G. (2010). China's national competitive advantage in electric mobility: the case of BYD. 2. Lin, ZL (2010). How do local governments implement low-carbon industry policies? A case study on the implementation of a demonstration project for new energy vehicles. Boston. Martin Locstrom, T. C. (2009). The electric vehicle industry in China and India: the role of governments in the development of the industry. Tagscherer, U. (2012). Electric Mobility in China – A Policy Review. Fraunhofer Institute for Systems Research and Innovation, 5.Wu, D. (2006). Analyze the competitiveness of the Chinese automobile industry using Porter's diamond model.