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US companies were a major presence at the China International Supply Chain Expo that kicked off on June 22, the day that the government added more of their compatriots to <a title="" href="https://asia.nikkei.com/economy/trade-war/china-hits-dozens-of-us-companies-with-export-controls-procurement-bans" target="_blank" rel="noopener">China's export control list</a>.
Nvidia CEO Jensen Huang addressed the event in a video message, underscoring the US-based artificial intelligence chip company's Chinese focus. "China is one of the world's great centers of technology and industry," he said. "The engineers are excellent. Developers move fast. Companies build at remarkable scale."
Chinese exporters are banned from exporting dual-use items to companies on the export control list. The measure also bans foreign organizations and individuals from providing dual-use items originating in China to these entities.
This hot-and-cold approach to US businesses reflects China's efforts to maintain and develop supply chains centered on itself, even as Washington calls for decoupling for economic security reasons.
The expo's opening ceremony featured a speech by vice premier Ding Xuexiang, who emphasized the importance of international cooperation in stabilizing global supply chains. Ding is the number six official in China's ruling party.
Such major US technology companies as Apple, Tesla, Micron Technology, and Qualcomm took part in the expo.
AI is becoming increasingly important to competitiveness for both companies and countries. The Chinese government is rapidly developing AI-related supply chains and has set up a dedicated AI exhibition area at the expo. The move also reflects the aim of attracting American companies.
More than 1,200 companies and organizations from 85 countries and regions have joined the event. Foreign companies account for 36.5% of participants, with companies from the US representing the largest share.
The expo is held under the auspices of the government-backed China Council for the Promotion of International Trade. Launched in 2023, the event aims to counter the US's decoupling and to maintain international supply chains that include American companies.
At the US-China summit this May, the two countries agreed to build "a constructive relationship of strategic stability." On the US side, there are hopes for greater exports to China. The US Soybean Export Council and agribusiness giant Cargill hosted exhibits at the supply chain expo. Exxon Mobil joined in anticipation of increased exports of crude oil and natural gas.
But the Chinese government also announced on June 22 that it had added ten US companies to its export control list. Chinese officials said the move came in response to the US Department of Defense having designated certain Chinese entities as "Chinese military companies."
While signaling a position of confrontation, China is maintaining ties with US companies indispensable to its supply chains. The approach reflects the Asian country's diplomatic and trade strategy.
Japanese companies also joined the expo amid the worsened Sino-Japanese ties that followed Japanese Prime Minister Sanae Takaichi's remarks last November about a hypothetical Taiwan crisis. Exhibitors included Panasonic Holdings, Sumitomo Electric Industries, AGC, Daikin Industries, Nippon Express Holdings, and Mizuho Bank.
The Japan External Trade Organization also hosted an exhibit, organizing the participation of 25 Japanese companies. Sumitomo Electric chairman and CEO Masayoshi Matsumoto was among the corporate and industry officials on hand.
"When government relations are difficult, it's traditionally been the business community that has worked to restore bilateral ties," Matsumoto said. "Our efforts will be important moving forward."
The Japan Chamber of Commerce and Industry also sent a delegation to China in conjunction with the expo, the first such mission since 2018.
"China's vast market is ahead in high-tech fields," said an executive at a Chinese subsidiary of a participating Japanese company. "US and European companies are also actively expanding there, and we hope to drive growth by enlarging our operations in China."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/supply-chain/china-expo-draws-nvidia-apple-micron-as-beijing-guards-ai-supply-chain">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China expo draws Nvidia, Apple, Micron as Beijing guards AI supply chain

China

… https://console.kr-asia.com/wp-content/uploads/2026/06/Ovum-Ariella-Heffernan-Marks-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2026/06/Ovum-Ariella-Heffernan-Marks-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-162770" class="wp-caption-text">Ariella Heffernan-Marks, founder and CEO of Ovum. Photo courtesy of the company.</figcaption></figure>
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<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">Xingantong, an AI data center sensing and efficiency management startup, has raised an eight-figure RMB sum in an angel round co-led by Legend Star and K2VC. It will use the funds for chip iteration, product validation, and market expansion. —<a href="https://36kr.com/p/3863885024973832">36Kr</a></li>
<li aria-level="1">Kunda, an aerospace equipment company, has raised an eight-figure RMB sum in a Series A round from Yongxin Rongyan. It will use the funds to develop next-generation intelligent assembly systems, expand capacity, and replenish working capital. —<a href="https://36kr.com/p/3863883390194692">36Kr</a></li>
<li aria-level="1">Lissome, a kitchen robotics brand, has raised an eight-figure RMB sum in a Series A round co-led by HongShan and Brizan Ventures, with participation from HKX and existing investors. It will use the funds for product upgrades, category expansion, kitchen robotics R&amp;D, global expansion, supply chain development, mass production, and hiring. —<a href="https://36kr.com/p/3863779663320069">36Kr</a></li>
<li aria-level="1"><a href="https://gigaai.cc/">GigaAI</a>, a physical AI company, has raised RMB 1 billion (USD 147.3 million) in a Series B2 round from Lion Partners Capital, the China-Belgium Direct Equity Investment Fund, JIC Investment, Wanxiang Qianchao, Fosun RZ Capital, Huagai Capital, Jin Venture Capital, Dyee Capital, Huacang Capital, Yuanshi Fund, and existing investors. It will use the funds to support its data and algorithm systems, foundation model upgrades, and industrial and home applications. —<a href="https://36kr.com/p/3859841488180487">36Kr</a></li>
<li aria-level="1"><a href="https://www.inspatio.com/">InSpatio</a>, a spatial intelligence company, has raised an eight-figure USD sum in a pre-Series A round from Luminous Ventures, Shunwei Capital, and HongShan. It will use the funds for model R&amp;D, 3D data infrastructure, computing infrastructure, partnerships, and hiring. —<a href="https://36kr.com/p/3858161395733764">36Kr</a></li>
<li aria-level="1"><a href="https://noonwake.com/">Noonwake.ai</a>, an emotional wellness startup, has raised nearly RMB 10 million (USD 1.5 million) in a seed round led by Yunqi Partners, with support from Var Capital. It will use the funds to develop AI-powered software and hardware products for emotional companionship and personal consultation. —<a href="https://36kr.com/p/3848483761493250">36Kr</a></li>
<li aria-level="1">Physis, a world model developer, has raised more than USD 100 million in a second seed extension round. Matrix Partners, 5Y Capital, Luminous Ventures, Ant Group, GL Ventures, and Yanyuan Fund joined the round. It will use the funds to pretrain its general world foundation model and build large-scale training systems. —<a href="https://36kr.com/p/3826129009234824">36Kr</a></li>
</ul>
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<h3>Pints AI, GreatAsic, YouLabs, and others made recent headlines:</h3>
<ul>
<li aria-level="1">Pints AI, a Singapore-based artificial intelligence startup, raised USD 5.6 million in a pre-Series A funding round led by Tin Men Capital and co-led by SBI Ven Capital. Seeds Capital, NTUitive, SUTD Venture Fund, and Tenity also participated.</li>
<li aria-level="1">GreatAsic Technology, a Malaysia-based fabless custom chip design company, raised USD 6.9 million in a pre-Series A round led by Vertex Ventures Southeast Asia and India. Ehsan Kapital and Gobi Partners also participated.</li>
<li aria-level="1">YouLabs, a healthcare platform based in Singapore and Hyderabad, raised USD 2.6 million in a seed round led by Crane Venture Partners, with participation from Dr Reddy’s Laboratories, Matrix Pharma, and designer Jayanti Reddy.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Deals in brief: Singapore-based ChemT, Synvo, and H3 Zoom raise funding; 100x100 launches climate fund; seven China investments; and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Southeast Asia

Chinese electronics manufacturer Longcheer Technology is betting on <a href="/industry/ai">artificial intelligence</a>-powered devices in the US to drive growth, underscoring the importance of the country's consumer market despite looming uncertainty over tariffs.
"North America definitely is our focus now because the competition in China is very strong," Shawn Zhang, general manager of Longcheer's US business department, told Nikkei Asia in a recent interview. He expects revenue from overseas markets, including the US, to continue to grow by double-digit percentage points each year.
A key focus for Longcheer is AI-powered smart glasses, which have gained traction in the US in recent years. Smart Analytics Global expects smart glasses shipments to expand 85% this year to 15 million units, driven by Google's entry into the market. Longcheer is already a supplier of AI glasses for the Ray-Ban Meta brand.
"We invested in this category many years ago [so that] when the demand comes, we can catch up very quickly," Zhang said. The company has two factories in China as well as one in Vietnam, which Zhang said serves the US market and was expanded last year. He also confirmed reports that the company is considering building a factory in Malaysia but declined to comment further.
Shanghai-based Longcheer, whose core business is designing and making smartphones for Samsung Electronics, <a href="/company/xiaomi">Xiaomi</a>, Oppo and others, joins a wave of contract manufacturers trying to boost growth by tapping fresh demand for AI-related hardware.
Huaqin Technology, another smartphone supplier, reported a jump in revenue last year thanks to strong demand for servers and other equipment used in AI data centers. Wingtech, another smartphone maker, has diversified into semiconductor manufacturing, although its losses widened last year after losing control of Dutch chip subsidiary Nexperia.
Longcheer's revenue declined 19% year-on-year in the first quarter to RMB 7.56 billion (USD 1.1 billion), due to weak smartphone sales. The surge in the price of memory chips is also weighing on demand for phones, especially in the lower price range, according to another Longcheer executive. With memory prices seven or eight times higher than last year, the company is trying to enhance the performance of a phone without upgrading the memory specifications, the executive added.
Profitability is another challenge for contract manufacturers in China. Zhang said one reason for the intense competition is that thanks to its mature supply chain, it is easy for startups or companies in other industries to enter the smartphone manufacturing business. Consumers are also sensitive to prices and will switch to other brands that offer a steeper discount, he added.
"In the past more than 20 years, we were more focused on the smartphone business. But now AI has opened up great opportunities," Longcheer founder and chairman Du Junhong told reporters during a tour of its headquarters earlier this month.
The appetite to capture US business comes despite looming uncertainty over tariffs. US President Donald Trump has agreed on a trade truce with Chinese counterpart Xi Jinping, suspending additional tariffs and other trade measures until November. But the US Trade Representative recently proposed tariffs on 60 economies, including China and Vietnam, for what it deems unfair trade practices based on forced labor.
Zhang said it is unlikely that major customers would change their supply chain strategies quickly, due to the high cost of doing so. Customers have so far not asked for Longcheer to build products in America. And even with higher tariffs, exporting from China could be more cost competitive if, for example, a customer needs to fly many engineers out to Vietnam.
"Vietnam, China … it works for now," he said. "We will still try to invest more capacity in Asia."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/supply-chain/chinese-electronics-maker-longcheer-bets-on-us-growth">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Chinese electronics maker Longcheer bets on US growth

Hardware

Internet of Things

Banu International Holding updated its prospectus on June 17 as it continues to advance its listing process on the Hong Kong Stock Exchange. CICC and CMB International are serving as joint sponsors.
Founded in 2001, Banu has become China’s largest premium hotpot brand by revenue. According to Frost &amp; Sullivan, Banu ranked first in China’s premium hotpot market by revenue in 2025. As of June 12, Banu’s directly operated store network covered 57 cities across China, with 200 stores in total, up 132.6% from the beginning of 2023. Its expansion also accelerated each year from 2023 to 2025, with 25 new stores opened in 2023, 35 in 2024, and 44 in 2025.
The updated prospectus showed that Banu’s full-year 2025 revenue reached RMB 2.85 billion (USD 419.9 million), up 23.4% year over year, while adjusted profit reached RMB 320 million (USD 47.1 million), up 88.7%. In store operations, its same-store sales growth rate was 4.8% for the full year, while its table turnover rate reached 3.6 times per day, up about 0.4 times year-on-year.
Behind those numbers is Banu’s longstanding focus on products. The company centers its menu on signature items such as beef tripe and wild mushroom broth. Its beef tripe is prepared using papain-based tenderization technology, which uses an enzyme derived from papaya. The company has also sourced tripe from New Zealand pastures for Chinese diners. Its wild mushroom broth uses mushrooms selected from the Yunnan-Guizhou Plateau and is freshly simmered in stores every day. Through initiatives such as a monthly vegetable refresh program and year-round fresh bamboo shoot supply, Banu aims to offer a fresher, higher-quality hotpot dining experience.
While China’s restaurant industry faces intensifying competition and many brands are caught in price wars, consumers are not simply chasing lower prices. According to Frost &amp; Sullivan, consumers are paying increasing attention to dish quality and ingredient freshness. Health and freshness are becoming new trends in the hotpot industry, pushing the market toward a better balance between quality and price.
Banu’s focus on quality has also helped expand its customer base. Its membership count grew from about 3.7 million at the beginning of 2022 to nearly 20 million in 2026.
On the supply chain side, Banu has built a set of industrialized capabilities around quality control. The company has developed a third-generation supply chain based on three principles: procuring chilled rather than frozen ingredients where possible, choosing natural options over additive-based alternatives where possible, and completing delivery sorting on the same day rather than overnight where possible.
Through a daily delivery logistics network, products move directly from central kitchens to stores nationwide. Each central kitchen has a coverage radius of up to 600 kilometers, enabling 24-hour fresh delivery and more stable ingredient presentation. As of June 12, Banu operated five integrated central kitchens combining production and logistics, as well as one specialized soup base processing plant. Its business covered 14 provinces and municipalities across China.
Banu has also built an integrated digital system covering the entire business process, including procurement and supplier management, central kitchens, warehousing and logistics, employee management, and store operations. Its store inventory management system can track and analyze inventory levels and shelf life for major in-store ingredients. Supported by this system, stores can place orders daily and receive next-day deliveries from central kitchens through logistics scheduling.
At the operational level, this system has brought efficiency gains. Banu’s average monthly sales per square meter rose from about RMB 2,300 (USD 338.9) in 2023 to more than RMB 2,650 (USD 390.5) in 2025. Its store-level operating profit margin increased from 15.2% in 2022 to 24.9% in 2025. Its same-store sales growth reached 4.8%, while inventory turnover days fell 16.3% from 2023 to 2025. The continued expansion of its store network has also helped dilute fixed supply chain costs while maintaining relatively stable quality control standards.
Another point worth noting is that Banu currently has 54 stores in its home base of Henan, while its store network outside the province has expanded to 146 locations nationwide. Compared with 2023, its number of stores outside Henan has grown by 265%. These stores have achieved competitive table turnover and profitability levels, supporting Banu’s case for nationwide replicability.
At present, Banu’s directly operated stores cover first-, second-, third-, and fourth-tier cities. Stores in non-first-tier cities account for 80% of its total, and the store-level operating profit margin in second-tier and lower-tier cities reaches 25.6%. To some extent, this shows that its product-focused value proposition has broad market adaptability and can run across different tiers of China’s market.
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Looking further ahead, Banu may also have room to grow overseas, supported by the expansion of Chinese restaurant brands abroad and overseas consumers’ interest in natural ingredients and higher-quality dining experiences.
Before the IPO, Tomato Capital was Banu’s only external institutional investor, holding 7.95% of the company.
Banu said in its prospectus that the net proceeds from the IPO will mainly be used to expand its directly operated store network, improve digitalization in business management and store operations, build its brand, optimize its supply chain, and provide working capital and funding for general corporate purposes.
This <a href="https://xueqiu.com/2854806290/395421482">article</a> was adapted based on a feature originally written by Stone Jin and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Hotpot chain Banu posts stronger profit growth in updated IPO prospectus

Hong Kong

… and Wenge Jiangcai, he controls 30.66% of the voting rights.
The shareholder register shows a clear cluster of state-backed investors. They include a fund run by China Development Bank, the China Internet Investment Fund, which will hold 3.35% after the IPO, a CCTV-managed media investment fund, Zhongguancun Science City, Beijing AI Industry Investment Fund, Shenzhen Capital Group-affiliated investors including Shenzhen Capital Group and Hongtu Technology, which will hold about 4.1% after the IPO, IPV Capital, and CAS Star.
Among the management team, CEO Luo Yin also comes from the Institute of Automation at CAS. Luo will directly hold 4.24% after the IPO, making him the founder with the largest direct shareholding. CTO Cao Jia also comes from the Institute of Automation. Wang, Luo, and co-founder Zeng Dajun, deputy director of the State Key Laboratory of Multimodal Artificial Intelligence Systems, will become the largest shareholder after the IPO through Zhongke Sanshi, which will hold 15.15%. The three hold about 75.87%, 13.43%, and 10.7% of Zhongke Sanshi, respectively.
CFO Zheng Chaomin only took office in May last year. He was previously a director at RSM, where he spent more than a decade in auditing. Board secretary Ma Li also took office only in June last year. He was previously a vice president in CICC’s investment banking department, coming from the same firm as one of the IPO sponsors.
The IPO attracted six cornerstone investors, which together subscribed for USD 31 million, accounting for about 27% of the fundraising amount. They are China Orient Enhanced Income Fund, affiliated with China Orient Asset Management, Harvest Global Investments, Qianhai International, Guohui Holdings, Huatai Capital, and CMBC International.
In its prospectus, Wenge AI said its competitors include major artificial intelligence service providers, software companies, and system integrators, and that these rivals have advantages in branding, operating history, customer base, and resources. The decision intelligence market was only about RMB 3.9 billion (USD 574.6 million) in 2025.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3857959588418823">article</a> was written by Peng Xiaoqiu for 36Kr.
Note: HKD, RMB figures are converted to USD at rates of HKD 7.84 = USD 1 and RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Wenge AI gears up for Hong Kong IPO at valuation above HKD 10.5 billion

Artificial Intelligence

Deep Tech

Foundation and Large Models

… orders.
<h3>Pushing into lower-end markets</h3>
Sales considerations may also be pushing HIMA to bring in secondary battery suppliers on a large scale.
At the end of 2025, Huawei executive director Richard Yu said during CCTV’s annual livestream that HIMA would launch more than ten new vehicles in 2026 and target annual deliveries of one million to 1.3 million units. Its five brands would cover price bands from RMB 150,000 (USD 22,101.4) to RMB 1.5 million (USD 221,014), using new products to drive incremental growth.
At present, new models such as the SAIC Z7, Luxeed V9, and Aito M6 have been released one after another. But the increase in models on sale has not yet translated into a major rise in HIMA sales. In May, HIMA’s sales grew nearly 3.8% year-on-year, slower than emerging <a href="/industry/ev">EV</a> brands such as Leapmotor and <a href="/company/xpeng">Xpeng</a>.
Official HIMA information referenced by 36Kr indicates that its cumulative deliveries from January to May this year did not exceed 200,000 units, with more than 130,000 contributed by the Aito brand. Compared with the target of delivering one million vehicles in a year, HIMA faces a sizable shortfall and has still not shaken off its reliance on Aito as a single brand.
The high-end market remains HIMA’s comfort zone, but the price bands occupied by models such as the Aito M9 and Maextro S800 ultimately have limited market capacity. Moreover, the new Aito M9 is under pressure from competing models including the Zeekr 9X, Li L9, and Nio ES9.
As fierce rivals emerge in the high-end market, Xpeng, <a href="/company/xiaomi">Xiaomi</a>, and other brands are also lowering prices and adding features in the broader mid-to-low-end market, pressuring models such as the SAIC Z7, Aito M6, and Luxeed R7.
In January this year, the Xpeng P7+ launched with its starting price lowered by more than RMB 30,000 (USD 4,420.3) to RMB 186,800 (USD 27,523.6). Xiaomi added a standard version of the Xiaomi YU7, bringing its starting price down to RMB 233,500 (USD 34,404.5) while still equipping it with a full suite of LiDAR (light detection and ranging) and advanced driver assistance features.
Value for money is one of the selling points most valued by low- and mid-end consumers. But constrained by the high costs of Huawei’s intelligent solutions and CATL power batteries, HIMA’s previous models targeting this price segment, including the SAIC H5, Luxeed S7, and Luxeed R7, did not achieve ideal market performance.
Now, under sales pressure, HIMA is trying to accelerate its penetration of this market through supply chain cost reductions.
An industry source close to Aito told 36Kr that all five HIMA brands have their own cost reduction methods. Aito has in fact been learning cost reduction from other HIMA brands and has long wanted to introduce secondary battery suppliers. Huawei and Seres had negotiated this many times. As companies gradually realized that the Huawei-CATL solution was too costly, Gotion’s 81-kWh battery pack is set to be installed on the Aito M6 this year.
At HIMA’s spring product launch in April, the Aito M6 had a starting price of RMB 259,800 (USD 38,279.6). After the introduction of secondary battery suppliers, the Aito M6 added two battery electric versions, Max and Max+. Both use 81-kWh battery packs and are priced lower than the original model, at RMB 229,800 (USD 33,859.3) and RMB 249,800, (USD 36,806.2) respectively.
This means the Aito M6’s starting price is several thousand RMB lower than the Xiaomi YU7 and about RMB 20,000 (USD 2,946.9) lower than the Li i6. In today’s intensely competitive automotive market, discounts of several thousand or even more than RMB 10,000 (USD 1,473.4) could become an important sales driver.
Luxeed is also experimenting with more cost-effective power battery solutions. A person close to HIMA said Luxeed is evaluating CATL’s mixed ternary and LFP battery system.
According to preliminary estimates, at the same 100-kWh capacity, a mixed-chemistry battery pack costs several thousand RMB less than a ternary battery pack. A RMB 5,000 (USD 736.7) reduction in bill-of-materials cost could translate into a viable cut of more than RMB 10,000 in the complete vehicle’s retail price.
For a long time, HIMA’s path has been to use technology to support brand premiums and quickly occupy the high-end market. But as its partner brand lineup expands and its market coverage broadens, it may also need tighter control over supply chain costs to maintain competitiveness.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3855879311823873">article</a> was written by Fan Shuqi for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

HIMA brings in secondary battery suppliers, with Gotion set to power Aito car models

East Asia

Transportation

Electric Vehicles

Batteries

Mobility

Energy

… its way out of the facility after injecting the fuel into a compressor.
A logo printed on one of the tanks read: "Actively promote hydrogen energy and embrace green mountains and clear waters."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/policy-asia/china-s-hydrogen-push-outstrips-japan-s-in-new-fuel-race">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.
Note: JPY, RMB figures are converted to USD at rates of JPY 160.14 = USD 1 and RMB 6.77 = USD 1 based on estimates as of June 15, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

China's hydrogen push outstrips Japan's in new fuel race

Japan

Tata Motors' decision to tap <a href="/industry/ev">electric vehicle</a> technology from China's <a href="/company/chery">Chery Automobile</a>, revealed earlier this month, has highlighted how Indian carmakers are increasingly leaning on proven technologies from China to power their electric cars—a strategy that could help accelerate launches, but carries risks given a history of frosty bilateral relations.
Tata Motors said in a statement on June 3 that some cars from its upcoming premium Avinya lineup will be based on a platform being jointly developed by its subsidiary Jaguar Land Rover and Chery, which was initially meant for reviving the Freelander brand. The first Avinya car will be rolled out next year.
Chery is also fueling the automotive ambitions of billionaire Sajjan Jindal, whose JSW Group has obtained a license to use the Chinese automaker's technology for a new brand expected to go on sale around the upcoming festive season, which runs from October through November. That builds on JSW's existing China connection through the 35% stake it bought two years ago in MG Motor's India operations, which are owned by China's SAIC.
Such deals reflect an urgency to make a splash with new cars as competitors from Japan, South Korea, and Europe, stung by the strong inroads being made by Chinese EVs, set their sights on India, which not only is the world's third largest car market but also has largely shunned Chinese players due to strict foreign investment rules. Indians are also warming up to EVs as the US war with Iran <a title="" href="https://asia.nikkei.com/business/energy/india-raises-regular-fuel-prices-for-1st-time-in-4-years-on-iran-war" target="_blank" rel="noopener">pushes up</a> gasoline prices, with cumulative sales in March and April jumping about 72% from the same period a year earlier to nearly 46,000 units, according to the Federation of Automobile Dealers Associations. The surge is raising hopes of <a title="" href="https://asia.nikkei.com/business/automobiles/electric-vehicles/ev-sales-set-records-in-37-countries-as-consumers-flee-high-gas-prices" target="_blank" rel="noopener">a sales boom</a> and nudging carmakers to gear up for a battle for market share.
"The primary driver is time," said Vinay Piparsania, founder of automotive consultancy MillenStrat Advisory &amp; Research.
Developing an EV platform from scratch could take "billions of dollars and several years of development," he said, while licensing could advance launches by at least three years and "significantly reduce execution risks."
The deals by Indian players underscore a broader push by carmakers around the world to borrow expertise from China, by far the world's biggest EV market, with some of them buying stakes in Chinese counterparts to access technologies spanning hardware and software. Among them are Germany's Volkswagen and Dutch carmaker Stellantis, owners of the Chrysler, Jeep, and Peugeot brands. Volkswagen has a stake in <a href="/company/xpeng">Xpeng</a>, while Stellantis, which also operates joint ventures with Dongfeng Motors, has invested in <a href="/company/leapmotor">Leapmotor</a>.
Analysts said that while Indian carmakers have mastered gasoline-powered vehicles, they are still fine-tuning their EV skills.
"The challenge is that EVs represent a technological discontinuity," Piparsania said. "Indian manufacturers remain highly capable vehicle developers, but they are currently choosing to cut short development cycles where global competition makes waiting costly."
Harshvardhan Sharma, group head of the automotive tech and innovation group at Nomura Research Institute, views these decisions as a "natural progression" for Indian carmakers coming to terms with a new reality.
"This is a practical short-term move, but India must convert it into a capability building phase," he said. "The ambition should be to license, localize, learn and eventually lead, not simply import and assemble."
Still, India has made some progress. Mahindra &amp; Mahindra, for instance, has developed EVs from the ground up, and plans to start exports in about two years, its automotives chief Rajesh Jejurikar <a title="" href="https://asia.nikkei.com/editor-s-picks/interview/india-s-mahindra-looking-to-evs-pickups-in-global-push-autos-ceo" target="_blank" rel="noopener">told Nikkei Asia</a> in a recent interview. Tata Motors itself also sells several EVs that are battery-powered variants of its popular gasoline hatchbacks and SUVs.
Indian companies including the Tata Group's Agratas, Exide Industries, and the Amara Raja Group are also building sprawling factories to manufacture battery cells, which could eventually shrink India's import bills. The Institute for Energy Economics and Financial Analysis estimates that nearly three-quarters of the lithium-ion batteries used in EVs in India are sourced from China, with the import bill soaring eightfold between fiscal 2019, which ended in March that year, and fiscal 2025 to top USD 3 billion. It could jump to USD 23 billion by 2030.
But Chinese technological prowess runs deep on that front, too. Amara Raja has licensed technologies from a subsidiary of China's Gotion, while Exide Industries has tapped Svolt, another Chinese firm.
Analysts warned that protracted dependence on China is risky, given the two nations' recent history of tensions, particularly over a territorial dispute in the Himalayas. In 2020, New Delhi tightened restrictions on Chinese investments after an outbreak of fighting there, although these were eased in March this year.
"India cannot afford to be slow in EV adoption, but it also cannot allow critical mobility infrastructure to become overdependent on one country," said Nomura's Sharma. "The risk is not just supply disruption, it is also pricing power, intellectual property dependence, cybersecurity, data and future bargaining leverage."
This article first appeared on <a href="https://asia.nikkei.com/business/automobiles/electric-vehicles/tata-chery-collaboration-highlights-indian-ev-makers-china-reliance">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Tata-Chery collaboration highlights Indian EV makers' China reliance

Chery

India

… overseas profits. Accelerating capacity release at overseas factories has therefore become a priority.
By sales structure, the fastest-growing regions globally are currently South America and ASEAN, centered on Thailand. BYD’s Brazil factory began production in 2025 and remains in the ramp-up phase. Its Indonesia factory is still under construction, with production targeted by the end of the year.
The Rayong factory has always occupied a special position. It laid the first brick for BYD’s overseas manufacturing network. Now it is also the first to face the question of how to keep expanding production.
BYD has only just learned how to build a factory overseas. But Li told 36Kr that colleagues from the Rayong project team who were transferred to Brazil found that they had to “start from zero” again, saying nothing could be simply reused.
In 2025, BYD’s Brazil factory was investigated by the Brazilian government after a contractor violated labor rules by making 31 people share one restroom. “Chinese people find it hard to imagine how strict other countries’ requirements for working conditions are, and they also find it hard to imagine what might make employees stop working,” Li told 36Kr. Although the Rayong factory required enormous effort and still only achieved 50% capacity utilization, “if you don’t take this seriously, you won’t even be able to start operations.”
Chinese companies can bring standardized, steel-reinforced factory buildings and production line equipment anywhere. But the social foundations on which that equipment runs cannot be copied. Even within ASEAN, Thailand and Indonesia may have similar climates, but their religious beliefs, family structures, cultures, and education systems are different. Thailand is predominantly Buddhist, while Indonesia is predominantly Muslim.
Building factories overseas is becoming unavoidable for Chinese automakers. What they lack is not a blueprint, but a playbook that can work repeatedly across countries.
BYD’s Rayong base shows a simple truth: when Chinese companies build factories overseas, they must first become employers worthy of respect. The way to earn that respect may vary by market.
In China, it may depend on pay and human connection.
In Germany, it may depend on reliability and rules.
In Thailand, it may depend on dignity and personal growth.
In South America, it may require proof of long-term commitment.
Ultimately, wherever a company goes, the principle is the same. Admired businesses become part of a place, rather than simply passing through it.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3846882883963139">article</a> was written by Xu Caiyu for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.78 = USD 1 based on estimates as of June 19, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

What BYD’s Rayong factory reveals about the limits of China’s overseas playbook

Thailand