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China will increase market share in EVs, dozens of other high-tech fields | Rare Techy


Chinese companies have taken the world’s market share in 13 high-tech products and services, from electric vehicles to smartphones, Nikkei research shows, showing a huge gap of China to global supply chains.

Among the 28 high-tech sectors evaluated by Nikkei, China increased its share to 13 in 2021. Chinese companies lost market share in six sectors and did not reach the five out of the remaining nine.

The Biden administration’s push for export controls on advanced semiconductors highlights the growing tensions between the US and China in a technology that is seen as vital to global security. nation and economy.

The possibility of a crisis in Taiwan in the near future has added to the pressure to maintain Asian supply chains. But research by Nikkei shows that it is not easy to fix them.

In the EV supply chain, Chinese battery leader Contemporary Amperex Technology, also known as CATL, is the world’s largest battery supplier, holding a 38.6% share last year. Its position has increased by more than 12 points since 2020. Together with partner BYD, the two companies held a share of 46%.

BYD rose to become the fourth largest EV maker last year, ahead of the Renault, Nissan Motor and Mitsubishi Motors alliance. BYD has used the ability to manufacture batteries in-house to keep its EV prices down.

In the first half of this year, BYD was the second largest EV manufacturer by vehicle sales behind Tesla.

When it comes to battery materials, Shanghai Energy New Materials Technology held 28.7% of the shares. The company has used government funding to invest in increasing profits. Japan’s Asahi Kasei is a distant second at 10.7%.

These results show that China is growing in EVs, both upstream and downstream, while the market is declining.

In liquid crystal displays, a sector in which Japanese and South Korean companies used to compete, China’s BOE Technology Group topped the two major TV and small media giants. language for phones and tablets.

In OLED displays (OLED), Apple took BOE as a supplier for iPhones, putting the company on the way to catch Samsung Electronics.

Chinese telecommunications company Huawei Technologies held the top spot in wireless network base stations, but its share fell to 34% from 38% under pressure from the US.

In total, Nikkei has 56 categories of products and services, focusing on the top five companies in each category last year in terms of market share. Chinese companies are in the top five in 32 categories, gained market share in 21 categories and lost share in 11 categories.

With the Chinese economy struggling under the government’s anti-COVID policy, companies are losing the market for construction machinery, including large and medium-sized trucks.

The US has the most shares in 18 categories, the most of any country. China is second with the top 15 shares.

Japanese companies led in seven categories. The Sony Group is the world’s leading supplier of CMOS image sensors. Sumitomo Chemical Group is a manufacturer of polarizers for LCD panels.

In the face of escalating Sino-US tensions, “international companies are working by separating supply chains into ‘China-bound’ and ‘non-China-bound'” said a Masahisa Inagaki, a partner at KPMG FAS.

Among them is Japan’s Daikin Industries, which is building a supply chain for air conditioners that does not use Chinese-made components and materials.

But “Japanese companies consider these activities as an addition to their business plans,” says Inagaki. “To minimize the impact from the crisis, they need to rethink their supply chain on a regular basis.”

This article originally appeared in Nikkei Asia. Reprinted here as part of 36Kr’s collaboration with Nikkei.


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