He's now driving the electric vehicle industry, becoming home to five major automakers.

CNBC Beijing Bureau Chief Eunice Yun takes us inside this major production hub.

If you're interested in a Chinese EV, you might want to visit Liuzhou in China's southwest.

This city of four million people in the province of Guangxi brands itself as an EV capital, and for good reason.

Liuzhou last year produced almost half a million electric vehicles of all types.

Some were made at this Wuling new energy factory managed by 30-year auto veteran Yu Hongqiao.

Liuzhou is very competitive as a city for new energy vehicle manufacturing, he says.

First, the cost of manpower is very low.

Second, the logistics cost is low.

Third, the industrial foundation is there.

Liuzhou is home to five major state-backed car makers, including Wuling's parent, Guangxi Auto.

We're on our way to another automaker, Yiqi.

It's famous for making a car that's used by the government elite called the Hongqi.

About a mile away is another company making EVs, Dongfeng Liuzhou Motor.

And SAIC, whose joint venture with GM and Guangxi Auto produces a popular $4,000 EV.

A lot of the supply chain is here too.

This town has about 300 EV suppliers.

Liuzhou's stated aim has been to produce more than 3 million EVs a year by 2025, but it's fallen short.

Data from Japanese auto research firm Marklines shows the city's factories could have the capacity to produce roughly three times as many EVs as they currently are.

Liuzhou hopes to rev up exports now at 1% of production.

Yu's company set up an overseas department last month, despite international criticism of China's overcapacity.

It's groundless, he says.

If your cost is low, thanks to your scale and your price is more competitive, anyone can compete, right?

Eunice Yun joins me now.

Very cool.

Peace, Eunice.

So China sees this really as a competitive opportunity, but some countries, including the U.S., are really pushing back.

What are some of the concerns here?

Well, Vicky, the main concern is that Beijing's industrial policies are promoting Chinese overcapacity across industries, including EVs.

And then that, in turn, could lead to flooded global markets, depressed prices, to what critics would say are unfair levels.

And then that could lead to the destruction of competing industries in other parts of the world.

So that's the reason why the Biden administration, Europe, Turkey, as well as other countries, are raising tariffs, and the Chinese are not happy about it.

All right.

CNBC Beijing Bureau Chief Eunice Yun, thank you so much.