ALB SEPTEMBER 2023 (CHINA EDITION)

33 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 WWW.LEGALBUSINESSONLINE.COM/CHINA TMT of new energy vehicle services in rural regions. Many local governments have implemented special local subsidy policies and measures to manage charging facilities effectively. Lin Wei, managing partner at Beijing DOCVIT Law Firm, pursued his undergraduate studies in electrical engineering and actively engaged in experimental research related to EVs. Lin is also a passionate enthusiast of cars and electronic products, a combination of interests that has uniquely equipped him to provide counsel to five car manufacturers in recent years, leveraging his profound industry knowledge. Lin firmly believes that the automotive industry is currently poised for significant iteration and development. Spearheaded by new energy vehicles, the industry is poised to generate an output value and scale even greater than the mobile internet wave that began in 2010. “New energy vehicles represent more than just a revolution in power sources. They encompass the advancement and application of battery, motor, and electronic control technologies, alongside the innovation and implementation of smart gateways, smart cockpits, and smart driving systems,” Lin asserts. “Historically, the automotive industry has boasted the longest industrial chain and the highest output value, making it an ideal showcase of a nation’s industrial prowess. With the emergence of new electric vehicles, hardware, software, data, and other crucial elements are converging on an unprecedented scale.” NEW GROWTH TRAJECTORY In terms of business models, new energy vehicles are charting a distinct growth trajectory compared to traditional vehicles. Lin explains, “The new energy smart vehicle industry is poised to disrupt the traditional 4S model and the profit-oriented after-sales market that relies heavily on a disproportionately high parts-to-whole price ratio. Instead, the after-sales market for EVs will emphasize innovation and compete more in terms of service charges, software subscriptions, digital consumption, and hardware upgrades.” The commercial value of the “new car-making forces” extends beyond vehicle manufacturing. At the 2023 ALB Shanghai In-house Legal Summit held in June, Wang Qi, legal director of NIO’s international business, emphasized NIO’s commitment to staying closely connected to the market and its customers. NIO places a strong focus on “products + services” to create added value for its customers. Gao further underscores the transformative impact of smart EVs on public lifestyles and the pivotal role played by in-house departments in this ongoing evolution. NIO’s in-house department not only offers comprehensive support to various business aspects but also conducts forward-looking research in areas such as data compliance and autonomous driving. Gao elaborates, saying, “Our team strives to gain deep insights into technology, products, services, and business models. Simultaneously, we actively engage in discussions and collaborations with industry peers, regulators, and research institutes, all aimed at better supporting the development of the smart EV industry.” “For instance, as an emerging technology, autonomous driving presents numerous unresolved legal challenges and calls for the further enhancement of laws and regulations in China and other countries worldwide. Our team diligently tracks the developments in laws and regulations within China, the European Union, the United Nations, and beyond. We actively collaborate with relevant institutions on various research and pre-research efforts, including applications for pilot market entry and the utilization of intelligent connected vehicles,” Gao explains. Lin draws a compelling analogy, likening new energy smart vehicles to super-smart terminals: “All the applications and scenarios that were previously confined to chips, computers, the Internet, mobile Internet, big data, and artificial intelligence will converge within this industry. Consequently, the new energy smart vehicle industry is poised to become a trillion-dollar sunrise sector annually in China alone for at least the next 20 years. Moreover, this industry aligns closely with policies related to the energy revolution, domestic demand stimulation, industrial upgrading, and scientific and technological breakthroughs.” DIVERSE ROLES Based on ALB’s observations, the inhouse teams of these EV manufacturers have become increasingly proactive in showcasing their work and team culture. Legal experts have also taken on dual roles as legal advisors and public relations professionals within EV companies. In May of this year, the in-house teams of NIO, XPENG, and Leapmotor established official Weibo accounts, with NIO’s in-house team also making an appearance on China’s TikTok platform. Li Auto and Tesla introduced their in-house teams to Chinese social media in 2022 and 2021, respectively. Gao shares that NIO welcomes media and public scrutiny. Their social media presence serves a dual purpose: to disseminate positive news that benefits the industry and societal development, and to provide timely feedback and

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