Chinese EVs offer opportunity and solutions: China Daily editorial

As foreign automakers experience declining sales in China, primarily due to the rise of the country's electric vehicle industry, some major international brands with an eye on the future are choosing to partner with local companies rather than exiting the world's largest auto market.

General Motors and Chinese automaker SAIC Motor last week extended their joint venture partnership by 20 years, through 2047 — a clear vote of confidence in China's automotive market. The renewed agreement will see both parties step up collaboration on R&D, supply chains and global resources, while sustaining support for their electrification and intelligent vehicle initiatives.

That came on the heels of an agreement last month between Honda and Guangzhou Automobile to extend their joint venture to 2038, as the partnership seeks to fast-track its shift toward new energy vehicles and regain market competitiveness. Other similar deals include an agreement announced in July between Ford and Geely to establish a Europe-focused joint venture at Ford's manufacturing hub in Valencia, Spain, and one in May between Stellantis and Dongfeng Group to expand their 34-year partnership to include shared production of Peugeot and Jeep vehicles in China, targeting both the domestic market and global exports.

The tie-ups have occurred as China's auto sector rapidly embraces a new era, with new energy vehicles accounting for nearly half of all new vehicle sales in the country during the first half of 2026. According to data from the China Association of Automobile Manufacturers, China produced 7.438 million NEVs and sold 7.446 million in the first six months of the year, representing year-on-year increases of 6.7 percent and 7.3 percent respectively, highlighting robust manufacturing capacity and strong market demand.

Experts attribute this progress to China's robust supply chains, economies of scale, and the rapid iteration of smart features such as driving aids and intelligent cabin interaction. It has become an industry consensus that China is now pioneering the future of smart mobility.

As a result, international brands are partnering with local Chinese producers to catch the trend, in the hope of winning back market share in China and bringing technology from China to their home markets.

This is not a short-term expediency, but a rational decision made in accordance with market dynamics. Only by deeply integrating with local R&D capabilities and truly recognizing the value of Chinese technology in meeting users' needs can a legacy automaker seize the opportunities presented by the wave of transformation sweeping the industry.

Yet, in the face of China's car industry rise, some advanced economies such as the United States and some countries in Europe have resorted to tariffs and policy restrictions to block Chinese EV exports — a move that runs counter to market rules and defies the momentum of green development. It is wishful thinking that they can erase China's technological prowess and supply-chain strengths simply by erecting barriers. Rather, protectionism will only delay their own auto industry's transition and drive up the cost of sustainable transport for their consumers.

The popularity of Chinese EVs in the European Union and Canada exposes the irrationality of the protectionist walls now being hastily erected by some politicians. Rather than being a so-called industrial "threat", China serves as a vital provider of solutions for the global green transition. International automakers have already voted with their feet by deepening partnerships with Chinese producers and tailoring products to meet the preferences of Chinese consumers.

The green transition is a common cause for all nations, and climate action recognizes no borders. Chinese EVs offer affordable, varied green options that enable more countries to embrace cleaner and more efficient transport at lower costs. To frame competition as a "security menace" and approach global supply chains with zero-sum thinking is both factually flawed and detrimental to achieving worldwide carbon neutrality.