From Apple to Ford, No One Can Avoid It! Chinese Technology Is Deeply Entering Global Corporate Supply Chains

Despite Washington's continued tightening of restrictions on China's technology industry—from artificial intelligence (AI) and electric vehicles to battery supply chains—Chinese technology is becoming ever more deeply integrated into the operations of major global corporations.

Apple (AAPL-US) is leveraging Alibaba and Baidu (BIDU-US)(09888-HK) to develop AI services in the Chinese market. Ford (F-US) has adopted battery technology from Contemporary Amperex Technology Co. Limited (CATL). Volkswagen is collaborating with Xpeng (XPEV-US)(09868-HK) to co-develop intelligent electric vehicles, while Stellantis (STLA-US) is expanding cooperation with Leapmotor in production and joint procurement.

Analysts point to a broader structural transformation underway. In the past, China was primarily a market for multinational corporations to sell products. Today, in certain industries, it has become a source of technology, supply chain capabilities, and innovation—making it increasingly difficult for global firms to bypass.

From Sales Market to Source of Technology

Kitty Fok, Managing Director of IDC China, said that five years ago, global companies came to China mainly to sell products. Now, in certain fields, they come to acquire technological capabilities. This shift is occurring even as the U.S. continues to curb China's technological development. After Huawei was placed on a blacklist in 2019, the U.S. progressively restricted exports of advanced chips and manufacturing equipment, imposed controls on investments in China’s semiconductor, quantum technology, and AI sectors, and sanctioned companies including Semiconductor Manufacturing International Corporation (SMIC).

Yet, China has established an undeniable presence across multiple technology industries. According to Counterpoint Research, Chinese automakers such as BYD, Changan, and Chery are projected to collectively account for nearly 63% of the global electric vehicle market by 2025. Battery manufacturers including CATL, BYD, CALB, and Gotion High-Tech are approaching a combined market share of 70%.

Soumen Mandal, Chief Analyst at Counterpoint, noted that cost, scale, manufacturing capability, supply chain integration, and speed of innovation are key reasons why global firms continue to collaborate with Chinese companies. China's technological advantage is no longer limited to low-cost manufacturing—it has expanded into massive production capacity, fully integrated supply chains, and rapid product iteration—forcing multinational corporations to balance geopolitical risks against commercial realities.

This transformation is particularly evident in the electric vehicle battery sector. Ford is using CATL’s lithium iron phosphate (LFP) battery technology to build a $3.5 billion battery plant in Michigan. Fok emphasized that switching suppliers is not a simple procurement decision made within a quarter; it involves years of engineering design, testing, and recertification. Once embedded in global supply chains, Chinese battery technology becomes extremely difficult to disentangle.

Some collaborations are primarily aimed at maintaining competitiveness in the Chinese market. Due to restrictions on foreign suppliers, multinational companies operating in China and requiring AI or cloud infrastructure typically must adopt local services—an example being Apple’s partnership with Alibaba and Baidu. Lian Jye Su, Chief Analyst at Omdia, pointed out that while market access remains a primary driver for many collaborations, a slow but steady restructuring of supply chains and innovation is also emerging in sectors such as batteries, electric vehicles, energy storage, and applied AI.

AI Becomes the Next Frontier of Competition

China's technological influence is also beginning to extend into AI. An IDC survey of European enterprises earlier this year found that the two main reasons for widespread adoption of Chinese AI models were compliance with security and regulatory requirements, and superior performance—cost being a secondary consideration. Fok believes that Western companies are adopting Chinese AI not simply because of lower prices, but driven by model performance, with security and compliance acting as safeguards.

Unlike U.S. firms such as Anthropic and OpenAI, Chinese companies like Alibaba (BABA-US)(09988-HK) and DeepSeek are more actively developing open-source models, making them easier for global developers to access and deploy. Su noted that while U.S. restrictions have constrained China’s access to cutting-edge semiconductors, they have also acted as a catalyst for domestic innovation and efficiency improvements, allowing Chinese suppliers to remain competitive in AI, batteries, and automotive software.

However, Chinese technology will not prevail in all domains. Advanced semiconductors, cybersecurity, defense, and services involving national security are expected to face the strongest resistance. Analysts believe the future will not be one of total bans or full acceptance, but rather differentiated approaches by industry. Chinese technology is expected to continue expanding into electric vehicles, batteries, consumer electronics, robotics, drones, and certain areas of AI and semiconductors—forming a more fragmented yet pragmatic global technology ecosystem.