Chinese Companies in Europe — 2026-09-09
The European Union has unveiled new "buy European" public procurement rules aimed at countering Chinese goods, while the European Parliament tightens investment conditions for Chinese firms. Meanwhile, Chinese automakers continue to surge in market share, with sales figures showing a record high in July, and battery giants CATL and BYD face regulatory delays in Hungary.
Chinese Companies in Europe — 2026-09-09
Top developments
EU Introduces "Buy European" Procurement Rules
On September 9, 2026, the EU unveiled new public procurement rules urging authorities to prioritize goods and services from European companies. While the rules do not impose binding quotas, they are explicitly designed to counter the influx of Chinese goods and services into the European market. This move signals a shift toward industrial policy protectionism as Brussels seeks to reduce its trade imbalance with Beijing.
European Parliament Tightens Investment Conditions
On September 8, 2026, rapporteurs on the proposed Industrial Accelerator Act released a report that goes further than the European Commission’s initial proposal by closing the EU market to Chinese investment in sectors where Beijing holds a dominant position. This legislative push aims to shield strategic European industries from Chinese capital as negotiations over tariffs and trade practices heat up.
Li Auto Phases Out CATL Batteries
In a significant supply chain shift reported on September 8, 2026, Chinese EV maker Li Auto announced it is moving to fully phase out batteries from CATL, echoing a similar strategic shift by Xpeng. This move reduces the dependency of major Chinese OEMs on the world’s largest battery maker, potentially impacting CATL’s domestic dominance even as it expands globally.
Chinese Brands Hit Record Market Share in Europe
New data highlights that Chinese car brands have already surpassed their entire 2025 European sales tally in just seven months of 2026. By July 2026, Chinese brands captured a record 11.2% of the European market, driven largely by electrified vehicles. This rapid expansion continues to put pressure on traditional European automakers despite ongoing tariff disputes.
Deals, expansion & investment
Changan Unveils New Driver-Assistance System On September 9, 2026, Changan Automobile unveiled its full-stack, in-house-developed "Changan SDA Pilot" driver-assistance system at its Technology Ecosystem Conference. While primarily a domestic announcement, this development underscores the technological maturity of Chinese OEMs as they prepare for more competitive entries into international markets, including Europe.
Regulation & market context
Hungary Halts Battery Plant Exemptions Following the withdrawal of factory exemptions by Hungary's new government, three battery plants—including those associated with CATL and BYD—have faced significant operational stops or delays. The removal of exemptions that previously allowed "key investment projects" to bypass environmental and urban-planning rules has forced these facilities into compliance reviews, slowing down the critical battery supply chain expansion in Central Europe.
On the radar
- JD.com Probe Fallout: China’s justice ministry has ordered domestic entities not to cooperate with an EU investigation into JD.com’s takeover of German assets, a move that could further chill cross-border M&A activity between the two regions.
- UBS Forecast: A new UBS report predicts Chinese automakers will reach a 37% global market share, warning European legacy brands like BMW and Mercedes-Benz of intensified competition.
- BYD's Second Plant Search: Reports indicate BYD is seeking a second factory site in Europe while its first Hungarian plant remains unfinished, highlighting the gap between Chinese expansion ambitions and local regulatory realities.
By the numbers
- 11.2%: The record market share held by Chinese brands in Europe in July 2026.
- 37%: The projected global market share for Chinese automakers according to UBS forecasts.
- $2.5 Billion: The value associated with the JD.com acquisition probe that is now facing non-cooperation orders from Beijing.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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