"We can say with confidence: we have achieved product exports, and we are also capable of supply‑chain globalisation," remarked Fu Yuwu, former Chairman of the Society of Automotive Engineers of China and the Auto Talents Special Committee under the China Association for Human Resources Research, at the 20th‑anniversary ceremony of the Auto Talents Special Committee on September 9.
This would have been hard to imagine only a few years ago. Today, a growing number of Chinese auto‑parts firms are expanding overseas. From securing overseas orders, gaining access to global supply networks of multinational OEMs, to building local plants and R&D centres abroad, Chinese supply‑chain players are reshaping their role in the global automotive industry.
Yet winning overseas orders only marks market entry. The real challenge lies in sustaining, deepening and scaling operations once companies set foot in foreign markets.
A New Technology Window Unlocks Opportunities
Why is deep‑reach global expansion now feasible for China's auto supply chain?
Yang Hong, Founder, Chairman and President of Hangsheng Electronics, attributes it to a new technology cycle that has reopened competitive opportunities for supply‑chain participants. "Vehicles are shifting from being dominated by mechanical systems to being jointly defined by electrical‑electronic architectures, software and AI."
In traditional mechanical segments, Chinese firms lag behind established global Tier‑1 suppliers such as Bosch, Continental and Denso, which have built decades‑long technological moats. In emerging fields including automotive electronics, smart cockpit and autonomous driving, however, Chinese players compete on the same cycle of technological iteration as their global peers.
China's domestic market offers unique real‑world validation conditions. Its massive sales volume and fast‑paced product iteration enable local suppliers to test products repeatedly and fix defects rapidly. A smart‑cockpit system may receive a new iteration within half a year or even shorter in China, compared with longer lead times overseas. Such efficiency gaps translate into tangible product competitiveness.
Hangsheng Electronics serves as a typical case. Founded in 1993 as a processing‑trade enterprise, it posted annual revenue of merely RMB 2.38 million. By strengthening indigenous R&D and systematic capabilities, the company hit RMB 1 billion annual revenue within its first decade. In 2007, Hangsheng obtained the first state‑accredited enterprise technology centre in China's automotive‑electronics sector. Yang introduced high‑reliability standards from the aviation industry into automotive electronics and gradually built robust quality management systems.
Many Chinese auto‑component makers have followed similar paths. Decades of development have earned them global‑level competence in key technologies, such as Bethel's EMB brake‑by‑wire solutions, CATL's power batteries and Horizon Robotics' autonomous‑driving chips - all nurtured within this new‑technology window.
This technological opening grants Chinese supply‑chain firms a ticket to go global.
Easy to Go Overseas, Hard to Gain Local Traction
Overseas markets now recognise Chinese suppliers for product quality and operational efficiency. Global OEMs including BMW and Tesla are actively seeking partnerships with Chinese suppliers, in some cases even driving their overseas expansion. Nevertheless, real competition begins after market entry, and people remain the ultimate deciding factor.
Talent underpins an enterprise's long‑term growth.When talking about Hangsheng's talent strategy, Yang Hong emphasises both in‑house development and recruitment of scarce external specialists. He highlighted the "competitive horse‑racing" mechanism: empowering young professionals to compete and grow through hands‑on business assignments.
This talent philosophy matters for domestic growth and becomes even more critical amid globalisation.Overseas operations demand more than R&D engineers and manufacturing specialists; they call for versatile cross‑functional talents. R&D staff must grasp global client requirements; managers need to lead cross‑cultural teams; overseas business leaders are expected to understand products, clients and local regulations simultaneously.
AI is further reshaping workflows within enterprises. According to Yang Hong, AI is already impacting roughly 10%‑20% of roles at Hangsheng, with the transformation still unfolding. Companies need to reduce repetitive tasks, reskill employees and shift their workforce toward higher‑value work.
Globalisation shares a similar logic. The convergence of electrical‑electronic architectures, central computing platforms, autonomous driving, AI, semiconductors and communications reshapes talent requirements. Enterprises need more professionals capable of cross‑discipline and cross‑cultural collaboration.
Fu Yuwu summarises corporate competitiveness as "hard power plus soft power". Hard power covers technology, products, quality and manufacturing capability - foundations that have enabled China's auto supply chain to venture abroad. Soft power encompasses corporate culture, governance, values, partnership competence and adaptability to diverse markets. It is soft power that ultimately determines how far and how long Chinese enterprises can thrive globally.