Chinese suppliers across the EV supply chain are confident that they can attract orders from Western outfits, as lower costs and technological competitiveness outweigh geopolitical tensions with Western trade blocs, the Financial Times reports. Synergies with China’s EV sector are key to boosting Western outfit’s competitiveness, helping automakers deploy cars years faster and cutting costs by up to a half, founder of Chinese electric vehicle parts supplier U-Power Paul Li told the FT. This is evidenced by recent big-ticket partnerships between Western firms and their Chinese counterpart, Li said, citing a recent USD 700 mn Volkswagen partnership with China’s Xpeng and a USD 1.5 bn investment in a China-based EV startup by Amsterdam-based Stellantis. These recent transactions demonstrate that even the largest automakers have to have a foothold in China-based EV supply chains to remain competitive, Li said.

Chinese outfits are also finding new ways to engage with Western markets, aside from direct exports from China, as US and European regulators crack down on China’s trade practices, the FT said. Chinese companies are turning their attention to establishing plants and research centers in Europe and North America, as well as setting up joint ventures with Western-based companies, the FT explained.

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