Foreign Ministry responds to US proposal to impose tariffs on China's semiconductor industry; reports indicate Xiaomi has developed all its own intelligent driving routes.
IT Home: On December 24th, Lu Fang, Chairman and Party Secretary of Voyah Automobile Technology Co., Ltd., published a long article on his personal Weibo account discussing the topic of "How to Get Rid of Involution in the New Energy Vehicle Industry." Lu Fang mentioned that the "involution" phenomenon, while superficially appearing as fierce competition between companies, actually reflects the fundamental problems of severe homogenization and insufficient innovation within the industry. Many companies pursue short-term profits, often choosing to copy and imitate rather than engage in original innovation based on user needs. This low-level competition leads to products comparing prices and specifications, ultimately resulting in a market flooded with "pseudo-innovations" that fail to truly meet user needs.
Jiemian News: On December 24th, the tenth anniversary of Leapmotor's founding, Zhu Jiangming, the company's founder, chairman, and CEO, released an all-staff letter stating that in 2025, the tenth year of the company's founding, it had achieved the goals set five years prior, and in 2026, it would challenge itself to achieve annual sales of one million vehicles. Zhu Jiangming introduced that the company's total sales in 2025 were close to 600,000 vehicles, and the company was expected to achieve annual profitability. Zhu Jiangming stated, “The past decade has been incredibly difficult for us; it was a near-death experience. We've only just crossed the poverty line; it's far from time to celebrate. Standing at the starting point of a new decade, from following to leading, this requires us to no longer consider ourselves a ‘new force,’ but rather to hold ourselves to the standards of a sustainable, respectable, world-class automaker.”
Jiemian News: On December 24th, Faraday Future (NASDAQ: FFAI) announced that Faraday Future Middle East FZ-LLC has signed a strategic, non-binding Memorandum of Understanding (MOU) with RAK Digital Assets Oasis (also known as RAK Innovation City). According to the MOU, the two parties will explore collaborations in areas such as AI, Web3, and embodied intelligence. Following the signing ceremony, the company held a co-creation delivery ceremony, delivering the FX Super One to RAK Innovation City in Ras Al Khaimah.
Gasgoo: Recently, according to Tianyancha, Volvo Cars China Investment Co., Ltd. underwent industrial and commercial registration changes. Yuan Xiaolin is no longer the legal representative and chairman of the company, and the new person in charge is listed as "HU YANHANG". Several senior executives of the company were also adjusted simultaneously. In response, Volvo Cars explicitly emphasized the stability of its management team. Currently, Yuan Xiaolin's position remains Senior Vice President of Volvo Car Group Global and President and CEO of Volvo Cars Asia Pacific, overseeing all Asia Pacific business.
International Financial News: Recently, Wei Jianjun, Chairman of Great Wall Motors, responded for the first time to the media regarding the frequent changes in leadership at the Wei brand. Wei Jianjun stated that every Chinese car brand dreams of becoming a high-end brand. He bluntly stated, "It's not that we dismissed them or told them to quit; it's that they themselves felt immense pressure." Building a successful brand requires a very comprehensive CEO, but the Chinese automotive industry has historically emphasized sales over management, and brand management remains a challenge.
21 Auto - Yijian Auto: Aside from end-to-end and VLA, Xiaomi has conducted preliminary research on all existing technologies, including WA and VA. Chen Guang, head of Xiaomi's end-to-end automotive division, stated, "The competition is fierce now, causing anxiety and a tendency to try various methods or technologies to make users feel more advanced. But in my view, VA, WA, and VLA are all the same; it's all about maximizing the intelligence density of the model." Chen Guang revealed that Xiaomi's intelligent driving team already has over 1800 members. "With good infrastructure, we don't need to invest too many people when looking for new directions. And the nature of a technology company gives Xiaomi a natural advantage."
LuKa Auto: Hyundai Motor Group (not "Hyundai China") is in contact with Geely Automobile to discuss the possibility of integrating the latter's hybrid system into domestically produced new cars. Sources say that Hyundai is considering directly adopting China's hybrid solutions, partly to reduce costs. “If we develop based on TMED-II, all the verifications would have to be done from scratch, the development cycle would be long, and huge development costs would be required.” For Hyundai, directly adopting a local Chinese solution is a more cost-effective and efficient solution. It is understood that the two parties are currently in the initial contact stage.
Component Manufacturers | Supply Chain News
Jiemian News: Guangyang Co., Ltd. announced on December 24 that it has signed a “Strategic Cooperation Agreement” with Zhejiang Konghui Automotive Technology Co., Ltd. The two parties will conduct comprehensive strategic cooperation on intelligent driving fully active suspension-related products, actively promoting the company's business layout in the field of intelligent driving. The cooperation includes the research and development and manufacturing of active stabilizer bars and other key components of drive-by-wire chassis.
Jiemian News: LG New Energy announced on December 24 that it has sold the assets of its L-H Battery Company in Ohio, USA, to Honda America for 4.2 trillion won (approximately US$2.86 billion).
Cailian Press: Wanxiang Qianchao stated on its interactive platform on December 24th that regarding its robot bearing screw production line, the company already has the capacity to produce 100,000 sets of roller screws annually, and will steadily advance mass production based on market demand and customer orders. In the low-altitude economy sector, the company's related bearing products have passed the airworthiness test for heavy-duty UAVs and have already received small-batch orders. In the future, the company will continue to expand its business into aircraft car bearings and universal couplings.
Industry Focus | Industrial Economy
Jiemian News: On December 24th, the main lithium carbonate futures contract saw its intraday increase widen to 6%, currently trading at 124,800 yuan/ton.
Cailian Press: On December 24th, data released by the China Passenger Car Association (CPCA) showed that from December 1st to 21st, the national retail sales of new energy passenger vehicles reached 788,000 units, a 1% increase compared to the same period last December and a 3% increase compared to the same period last month. The national penetration rate of new energy passenger vehicle retail sales was 60.6%, with a cumulative retail sales of 12.26 million units since the beginning of the year, a year-on-year increase of 18%. From December 1st to 21st, the national wholesale sales of new energy passenger vehicles by manufacturers reached 782,000 units, a 10% decrease compared to the same period last December and a 12% decrease compared to the same period last month. The national penetration rate of new energy passenger vehicle wholesale sales by manufacturers was 60.1%, with a cumulative wholesale sales of 14.538 million units since the beginning of the year, a year-on-year increase of 25%.
Policy Situation
Xinhua News Agency: Regarding the US's proposed tariffs on China's semiconductor industry starting in 2027, a spokesperson for the Ministry of Foreign Affairs stated at a regular press conference on December 24th that China firmly opposes the US's abuse of tariffs and unreasonable suppression of China's industry. The US's actions disrupt the stability of the global supply chain, hinder the development of the semiconductor industry in various countries, and are harmful to both sides. The spokesperson stated that China urges the US to correct its erroneous practices as soon as possible, guided by the important consensus reached by the two heads of state, and to resolve their respective concerns through dialogue on the basis of equality, respect, and mutual benefit, properly manage differences, and maintain the stable, healthy, and sustainable development of China-US relations. If the US persists in its unilateral actions, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.
Cailian Press: A meeting of heads of central enterprises was held in Beijing from December 22nd to 23rd. The Secretary of the Party Committee and Director of the State-owned Assets Supervision and Administration Commission of the State Council stated at the meeting that central enterprises should take the high-quality formulation and implementation of the "15th Five-Year Plan" as a starting point to promote the timely advancement of their layout and structure, and facilitate the "three concentrations" of state-owned capital. They should continue to focus on key areas such as new energy, new energy vehicles, new materials, aerospace, low-altitude economy, quantum technology, and 6G, and intensify efforts to select and cultivate enterprises for development. They should continue to promote technological transformation and large-scale equipment upgrades, and further advance energy-saving and carbon-reduction transformations in key industries. At the same time, central enterprises should vigorously promote strategic and professional restructuring and integration, as well as high-quality mergers and acquisitions, actively acquire core elements, cultivate competitive advantages, and seize development opportunities. State-owned capital investment and operation companies should better leverage their platform role.