As the 21st Shanghai International Automobile Industry Exhibition is at its full zenith, attracting global exhibitors and visitors, China is strategically looking to seize this opportunity to compete with the US tech industry by aiding global smart cars. Meanwhile, global car manufacturers are also trying to leverage Chinese technology by integrating it into their operations. 

After Trump imposed tariffs on Chinese imports, the already tense trade war between the two global powers further escalated. Both countries are vying for dominance through advancements in technology, strategic trade policies, alliances, and innovation. In this regard, China is now attempting to overshadow US hegemony in the global automobile industry by aiding smart cars. 

China Aiding the Global Automobile Industry with AI Technology

China’s AI technology is playing a pivotal role in driving the global automobile industry. For instance, BMW announced that in the third quarter of the year, the company will launch vehicles with DeepSeek integration. Similarly, Mercedes-Benz incorporated ByteDance’s Doubo large language model in its latest long-wheelbase CLA. This collaboration of global automobile giants with Chinese AI startups indicates the strengthening Chinese position in offering cutting-edge technology to the automakers. The UBS analyst Paul Gong opined on the growing role of China in the global automobile industry 

“China has evolved from a market with potential to the largest and most profitable market, then into the most competitive manufacturing hub, and gradually into a training ground and fitness centre — and now, into a ‘brain,’ the core of research and development.” 

China Envisions Becoming a Powerful Car Nation 

Miao Wei, China’s former industry minister and a key player in China’s automobile industry, opines that although China is capable of producing 10 million EVs annually, this benchmark indicates scale rather than technological prowess of China. Therefore, China needs to focus on becoming a powerful car nation rather than a big car nation. For that, China needs to invest in the AI industry, from automotive chips to AI driving systems.