In 2013, China overtook the US as the world’s largest smart grid market by investing $4.3 billion in smart grids, which accounted for more than one-quarter of the $14.9 billion spent globally in that year. From 2009–2020, State Grid Corporation of China (SGCC) has planned the development of the smart grid in China in three phases with a total investment of $601.1 billion. Increasing adoption of EVs and use of renewable energy sources have a great impact on smart grid infrastructure. 

According to the China Association of Automobile Manufacturers, a total of 507,000 fully electric and hybrid vehicles were sold in the country in 2016, of which 352,000 were new EVs. In August 2017, 55,000 new passenger electric cars were registered in the country, growing by 68% compared to August 2016. From January to August 2017, over 282,000 electric cars were registered. In October 2017, around 66,000 electric cars were sold in China. According to the Bank of America Merrill Lynch, China is expected to maintain a 50% share of global pure EV sales until 2030. In September 2017, the Chinese government announced a dual-credit scheme that will be launched in 2019, requiring car makers to produce a minimum number of EVs.