Chinese Technology Becomes Indispensable for Global Companies

Leading global companies are making significant strides in integrating Chinese technology into their supply chains and products, particularly in critical areas such as artificial intelligence (AI), electric vehicle (EV) batteries, and automotive software. This trend signifies a structural shift that goes beyond individual partnerships, indicating China's deepening role in the global technology ecosystem. Giants like Apple (AAPL) and Ford (F) are also part of this movement, increasing their collaborations with Chinese technology providers.

This strategic shift is accelerating despite the United States' efforts to curb China's technological rise. For instance, tech giant Apple (AAPL) is turning to local companies like Alibaba and Baidu for AI services in the Chinese market, while automotive leader Ford (F) has adopted Chinese CATL's battery technology and plans to utilize it at its $3.5 billion battery plant in Michigan. Similarly, German automaker Volkswagen is jointly developing smart electric vehicles for the China market with Xpeng, and Stellantis is expanding its cooperation with Leapmotor on EV production and joint procurement.

Kitty Fok, Managing Director at IDC China, notes that five years ago, China was primarily a market where global companies sold products, but it has now become a source of capabilities in some industries. According to Soumen Mandal, Principal Analyst at Counterpoint Research, Chinese automakers accounted for approximately 63 percent of the global EV market in 2025, and Chinese battery makers held close to a 70 percent share. These figures highlight that China's technological rise is moving beyond low-cost production to encompass scale, supply chain depth, and the pace of innovation.

The impact of these developments on markets is particularly evident in the EV battery sector. Chinese battery manufacturers like CATL are deeply embedded in the global auto industry. Industry experts emphasize that for EV batteries, “the structural shift is already over,” and changing suppliers is not a procurement issue decided within a quarter but a complex matter requiring years of engineering, testing, and re-certification. A similar transformation is observed in the AI sector; Gartner forecasts that over half of global companies will use Chinese AI for internal business operations by 2027. This represents a significant jump from just 5 percent last year and indicates that the technology gap between the US and China in AI is rapidly narrowing.

This integration is occurring despite the US's efforts to restrict China's advancements in technology. Washington is attempting to curb Beijing's technological ambitions through measures such as export controls on advanced semiconductors and chipmaking equipment, as well as investment bans in certain AI sectors. However, global companies are compelled to balance practical needs—such as performance, supply chain efficiency, and access to the Chinese market—against geopolitical risks. China is increasingly positioning itself not merely as a manufacturing base but also as a significant technology supplier and a source of innovation.

Analysts anticipate a wider global adoption of Chinese technology across electric vehicles, batteries, consumer electronics, robots, drones, and specific areas of AI and semiconductors. Nevertheless, resistance to Chinese technology is expected to remain strongest in sensitive sectors such as advanced semiconductors, cybersecurity, defense, and national security. While the structural change in battery and electronics manufacturing is largely complete, AI is in a transitional phase, and automotive software remains at an early stage. This complex balance will continue to be a significant agenda item for global companies in the foreseeable future.