[Asia Economy Reporter Jeong Hyunjin] Although the number of companies calling for 'de-Chinaization' in global supply chains is gradually increasing, China's presence in advanced technology sectors such as electric vehicles (EVs) grew even stronger last year.
On the 23rd, Nihon Keizai Shimbun reported that a survey of the market shares of the top five companies for 56 key items?including final products and services, core components, and materials critical to global economic activities?showed that among 28 major high-tech items, China’s market share expanded in 13 items. Market share decreased in 6 items, and Chinese companies were not included in the top five for the remaining 9 items.
The most notable sector was the electric vehicle-related field. The world’s largest battery manufacturer, China’s CATL, saw its market share rise by 12 percentage points from the previous year to 38.6% last year. Combined with another Chinese battery company, BYD, the total market share of Chinese companies was recorded at 46%. According to Nihon Keizai, BYD also ranked fourth in market share in the electric vehicle complete car segment, surpassing the Renault-Nissan-Mitsubishi alliance.
In the insulating material market, a key component of lithium-ion batteries, China’s Shanghai Energy increased its market share to 28.7%, widening the gap with Japan’s Asahi Kasei, which held 10.7% and ranked second. Shanghai Energy overtook Asahi Kasei in 2019 to claim the top market share and has been expanding its presence since. Nihon Keizai stated, "Chinese companies are solidifying their position throughout the rapidly expanding electric vehicle supply chain, from start to finish."
China’s growth is also rapid in the display sector. Chinese company BOE has rapidly expanded in recent years, increasing its market share in both large and small-to-medium-sized LCD (liquid crystal display) panels. Additionally, China continues to pursue growth in the organic light-emitting diode (OLED) market, where South Korea has been dominant.
Out of the 56 surveyed items, Chinese companies ranked among the top five in 32 items, with market share expanding in 21 of those. The United States led with 18 items where it ranked first globally, followed by China with 15.
Nihon Keizai commented, "The Biden administration in the U.S. is strictly regulating exports of advanced semiconductors to China, intensifying economic security tensions between the U.S. and China. While supply chain reassessment is required in light of concerns such as China’s potential attack on Taiwan, the survey results show that Chinese companies maintain a high market share."
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