Related and supporting industries: With more than 7,500 small and medium-sized enterprises, China's automotive supplier market is still highly fragmented (China Association of Automobile Manufacturers (CAAM), 2007). Around 70% of the world's top 100 automotive suppliers have subsidiaries in China, with operations dispersed across this vast country, as most OEMs (original equipment manufacturers) have developed their own supplier networks around them (Kasperk, 2010 , p. 7). . Initially, according to 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 quality standard equal to that of German suppliers in product segments with low and medium technological sophistication. However, most Chinese automotive suppliers still suffer from poor R&D and low production volumes due to small-scale production (Kasperk, 2010, p. 7). Only very few are able to offer complete modules or systems, most offer simple spare parts such as tyres, fuel tanks and bearings (Kasperk, 2010, p. 7). Chinese automotive suppliers account for less than 10% market share when it comes to sophisticated product segmentation. The Chinese government is implementing concentration policies that help suppliers develop complete module manufacturers or system suppliers instead of just providing ordinary spare parts. Additionally, a large number of Chinese suppliers are increasing spending on research and development and collaborating with universities. Although the distance between Chinese and global suppliers regarding technology and quality standards is quite substantial, C...... middle of the document ......Discussion Papers Systems Innovation and Analytics of policies.Hardin, G. ( 1968). "The tragedy of the commons". Jimenez, J. P. (2012). Policy options for promoting electric vehicles: a review. Research Institute of Applied Economics.Kasperk, G. (2010). China's national competitive advantage in electric mobility: the BYD case. 2. Lin, Z. L. (2010). How do local governments implement low-carbon industry policies? A case study on the implementation of a new energy vehicle demonstration project. Boston.Martin Locstrom, T. C. (2009). The electric vehicle industry in China and India: the role of governments for industrial development. Tagscherer, U. (2012). Electric mobility in China: a policy review. Fraunhofer Institute for Systems Research and Innovation, 5.Wu, D. (2006). Analysis of the competitiveness of the Chinese atomic industry through the Porter diamond model.