Chinese Companies in Europe — 2026-09-11
Hungary’s new government has intensified environmental scrutiny on Chinese battery and EV giants CATL and BYD, delaying production start-ups. Simultaneously, the European Commission proposed new public procurement rules that could effectively exclude Chinese firms from a €2 billion annual market, while Li Auto announced plans to phase out CATL batteries in favor of its own supply chain strategy.
Chinese Companies in Europe — 2026-09-11
Top developments
Hungary Tightens Environmental Oversight on CATL and BYD
Hungary’s newly elected government has initiated a strict environmental review of major industrial projects signed under the previous administration, specifically targeting the battery plants of CATL and BYD. This regulatory shift, following the opposition's victory in April 2026, has already caused delays in production timelines for these key Chinese manufacturing hubs in Europe. The move signals a significant political pivot in one of the most receptive EU member states for Chinese industrial investment.
European Commission Proposes Excluding Chinese Firms from Public Procurement
On September 9, 2026, the European Commission proposed legislation introducing a "European preference" in public procurement for strategic services. This measure is explicitly designed to limit market access for Chinese companies, impacting a sector valued at approximately €2 billion annually. The proposal aims to strengthen European industrial autonomy but risks further fracturing trade relations between Brussels and Beijing.
Li Auto Bids Farewell to CATL
Li Auto announced on September 8, 2026, that it will fully phase out CATL batteries from its vehicle lineup, echoing a similar strategic shift by Xpeng. This move highlights a growing trend among Chinese EV makers to diversify their supply chains away from the dominant battery giant, potentially reducing CATL's influence in the premium EV segment. While primarily a domestic China strategy, this shift affects global battery supply dynamics and CATL’s export potential.
Li Auto Targets European Debut with "Li 6"
Another major Chinese automaker, Li Auto, confirmed plans to debut its European version of the i6 model, renamed the "Li 6," at an auto show in October 2026, with sales expected to begin later in the year. This entry adds another strong contender to the crowded European EV market, following Xiaomi’s recent dealer partnerships. The expansion underscores the aggressive push by Chinese premium EV brands into the continent.
Deals, expansion & investment
No major new plant announcements or M&A deals involving Chinese companies in Europe were reported in the last 24 hours beyond the strategic shifts noted above.
Regulation & market context
The European Parliament is currently tightening conditions for the proposed Industrial Accelerator Act, going further than the Commission’s initial suggestions to close the EU market to Chinese investment in sectors where Beijing holds dominance. This legislative momentum, combined with the new procurement proposals, indicates a coordinated effort to shield strategic industries from Chinese competition.
On the radar
- UBS Market Forecast: A report from UBS predicts that Chinese automakers could capture 37% of the global market share, posing a severe threat to European legacy brands like BMW and Mercedes. The analysis suggests this surge will pressure European stock valuations in the auto sector.
- German Market Share Gains: A Handelsblatt analysis indicates that Chinese brands are beginning to overtake certain established European marques in Germany, signaling a critical inflection point in Europe's largest car market.
By the numbers
- €2 billion: Annual value of the strategic public services market potentially closed to Chinese firms by the new EU procurement proposal.
- 37%: Projected global market share for Chinese automakers according to UBS, highlighting the scale of competitive pressure facing European manufacturers.
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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