China's automotive supply chain is accelerating its shift toward a more internationalized model,supported by the country's lead in intelligent electric vehicle technology and Chinese brands'growing market share abroad,while rising overseas demand and policy shifts in key markets accelerate localization and overseas investment.
Since October 2025,more than 15 Chinese automakers and auto-parts makers have disclosed overseas projects,with combined planned investment exceeding 70 billion yuan($10.76 billion),according to a report by Cailian Press.
CALB,a Chinese lithium battery producer,signed an investment contract for a battery plant in Portugal on Jan 20,with a planned investment of 2.06 billion euros($2.45 billion).
The project aims for an initial annual capacity of 15 gigawatt-hours,expandable to 45 GWh.Deliveries are set to begin in 2027,with full operations planned for 2028.
A joint venture between China's CATL and multinational automaker Stellantis broke ground on a lithium iron phosphate battery plant in Spain in late 2025,marking one of the largest Chinese industrial investments in the country.
The project involves planned investment of 4.1 billion euros and is expected to begin production by the end of 2026,delivering up to 50 GWh of LFP batteries a year for electric vehicles.
In addition,Chery Automobile has said it plans to build its largest factory in Southeast Asia in Vietnam by mid-2026,with a total investment that could reach$800 million.Initial annual capacity is expected to be 30,000 to 60,000 vehicles,with potential to rise to 200,000 units,depending on demand.
"Chinese companies say overseas markets offer significant growth potential,underpinned by China's early lead in intelligent electric vehicle technologies and industrial development,"said Zhang Yongwei,president of China EV100.
He added that China has moved beyond breakthroughs in vehicle manufacturing to build a globally competitive ecosystem for key components,strengthening its position in the global auto supply chain.
"As a result,both Chinese automakers and parts suppliers are drawing significant attention,and have been well received in many markets as they expand abroad,"Zhang said.
Moreover,analysts said that Europe and other traditional automotive manufacturing powers,as they shift toward electrification and intelligent vehicles,are also seeking to align with China's supply-chain strengths in related fields,so as to upgrade technologies and rebuild capabilities across their domestic industrial chains.
The deeper integration of the automotive supply chain into overseas markets is also being driven by the growing overseas market share of Chinese car brands.
Data from the General Administration of Customs and the China Passenger Car Association show China exported 8.32 million vehicles in 2025,up 30 percent year-on-year,while NEV exports rose 70 percent to 3.43 million units.
Cui Dongshu,secretary-general of the CPCA,said exports showed rising volume and prices,and a more optimized structure.He said major destinations were Europe,ASEAN and South America,and exports to Belt and Road Initiative countries maintained a solid share.
Additionally,policy adjustments in key overseas markets are offering additional support for China's auto exports and overseas expansion.
China and the EU said they had agreed on a framework for Chinese EV imports into the bloc on Jan 12,including a minimum-price arrangement.Canada has announced a quota of up to 49,000 Chinese electric vehicles a year under a 6.1 percent most-favored-nation tariff rate.
Germany has reintroduced an EV purchase-incentive program worth 3 billion euros through 2029 that is open to all automakers,including Chinese brands.
