The Alliance for American Manufacturing (AAM) highlighted the Chinese automotive expansion of BYD, SAIC Motors and CATL.
Founded in 2007, some of the leading U.S. manufacturers and the United Steelworkers union form the AAM.
Chinese automotive expansion
AAM considered these three companies to be part of the Chinese government’s big bet. But it added that their rapid growth is occurring without regard to supply and demand. Nor in general the basic forces of the market.
BYD is one of the world’s largest automotive companies, with more than 3 million vehicles sold in 2023, of which 1.6 million were electric. It is listed in Hong Kong and Shenzhen, with a market value in excess of $82 billion.
CATL, the world’s leading battery manufacturer, leads the global market for the seventh consecutive year, according to SNE Research. In 2023, CATL’s battery consumption reached 259.7 GWh, an increase of 40.8% over 2022, achieving a market share of 36.8%, beating its nearest competitor by 21%.
SAIC Motor leads the automotive market in China, with activities including vehicle production, components, mobility services and international business.
AAM warned the U.S. Department of Commerce about the growing threat posed by state-backed Chinese manufacturers. Although with limited direct imports from China, the Chinese automotive sector has evolved significantly since the 2009 financial crisis, thanks to state support such as tax breaks, favorable credits and subsidies. In addition, Chinese companies have benefited from joint agreements and technology transfers imposed on foreign companies seeking to enter the Chinese market.
Supply chains
China’s technological leadership and extensive supply chains, particularly for raw materials and critical battery components, are deep and secure due to its defined and deliberate industrial policies. Beijing has prioritized reducing dependencies on other countries, which in turn makes the world increasingly dependent on its own supply chains.
The country became the world’s top auto exporter in 2023, selling cars in Europe, Australia, Africa, Mexico and Southeast Asia, and Chinese automakers lead the world in electric vehicle production and sales by wide margins.