Over the past three months more than a dozen Chinese carmakers and parts suppliers have announced overseas investments that together exceed RMB70 billion, marking an acceleration in the sector's globalisation. The largest disclosed project so far is by battery maker Zhongchuang Xinhang, which signed an agreement with Portuguese authorities for a European lithium‑ion gigafactory with a planned investment of 2.067 billion euros and staged capacity rising from 15 GWh to 45 GWh.
The Portuguese plant, sited in the industrial and logistics zone of Sines port on 45 hectares, is slated to begin deliveries in 2027 and reach full operation in 2028, creating roughly 1,800 direct jobs. For Chinese suppliers the deal exemplifies a shift from exporting finished cars to building localized production and supply ecosystems abroad, reducing logistics costs and exposure to trade frictions.
Chinese vehicle exports surged in 2025, with customs and industry association data recording 8.32 million units shipped overseas, a 30 percent rise year on year, and 3.43 million new energy vehicles exported, up 70 percent. Passenger cars have led the growth, with Europe, ASEAN and South America remaining top destinations and Belt and Road countries sustaining a significant share of exports.
Trade and policy moves have eased access to major markets. Beijing and Brussels reached an agreement in principle on a minimum price commitment mechanism for EV exports to the EU, while Canada reversed a 2024 100 percent tariff and approved an initial quota of 49,000 Chinese EVs at a 6.1 percent tariff with plans to expand the quota annually. Germany has also relaunched a 3 billion euro EV purchase subsidy, open to all manufacturers and able to benefit Chinese brands operating in the region.
Beyond regulatory openings, Chinese firms are targeting emerging markets where local industrial capacity is thin and establishing full production chains offers competitive advantage. Automakers and component suppliers see opportunities to site plants, secure local content, and supply regional markets from lower‑cost hubs, thereby embedding Chinese technology and standards deeper into global value chains.
Industry voices highlight how the supply chain transformation is reciprocal. Chinese suppliers enjoy a lead in battery and electric powertrain technology and are being courted by European manufacturers seeking to accelerate electrification and autonomy. At the same time, outward investment by Chinese firms helps restructure supplier networks, bringing scale efficiencies and new pricing dynamics to established automotive hubs.
Projections cited by industry analysts expect Chinese EV exports to the EU to grow at about 20 percent annually between 2026 and 2028, while longer‑term forecasts envision China maintaining nearly half of global vehicle production and sales by the end of the current medium‑term plan. That scale would cement China as a central node in the global automobile industry and in emergent EV supply chains.
The expansion carries strategic risks as well as commercial opportunity. Host governments and rival producers may respond with tighter screening of foreign investment, localization requirements, or targeted industrial policies if concerns about dependency, technology transfer, or market disruption rise. Geopolitical tensions could reintroduce barriers, prompting firms to diversify markets and localise further.
For multinational automakers, parts suppliers and policy makers, the immediate implication is that China is no longer merely an export platform but a proactive architect of global EV supply structures. Expect continued outbound greenfield projects and acquisitions, deeper local integration in third‑country markets, and increasing political scrutiny where strategic industrial assets are at stake.