China's automotive supply chain is at a pivotal moment, according to speakers at the 2026 China Auto Supply Chain Conference held in Kaifeng, Henan province, from October 19 to 21. The event, organized by the China Association of Automobile Manufacturers (CAAM) and local government bodies, drew executives from major automakers and suppliers to discuss how the industry can move from scale leadership to system-level competitiveness.
From Scale to System Strength
Song Zhiming, vice president of the China Machinery Industry Federation, said the industry is transitioning from "scale leadership" to "quality leadership" and from "product advantages" to "system advantages." He urged companies to tackle "bottleneck" technologies and strengthen the industrial base, while also calling for an end to "involution-style" competition—a term describing excessive, zero-sum rivalry—and irrational price wars. He proposed four priorities: innovation-led supply chain upgrades, stronger roles for leading companies, better industry self-discipline, and open cooperation to build a globally competitive supply chain.
Wu Bilei, vice president of China FAW Group, echoed these themes, emphasizing the need for deeper collaboration between automakers and suppliers. He highlighted three areas: building a symbiotic ecosystem, developing resilient supply chains for global markets, and preparing for next-generation technologies such as artificial intelligence. Wu said China's auto exports are not just about vehicles but the entire supply chain system going abroad.
Fu Bingfeng, CAAM's vice president and secretary-general, stressed the importance of key technologies like vehicle-grade chips, on-board operating systems, solid-state batteries, and new electronic and electrical architectures. He also called for a shift from exporting complete vehicles to exporting vehicles, parts, and services as a package, with automakers and suppliers working together to build international presence.
Kaifeng's Ambitions and Industry Challenges
The conference highlighted Kaifeng's efforts to become a major auto manufacturing hub. Li Fusheng, a member of the Kaifeng municipal party committee, said the city is collaborating with nearby Zhengzhou to create a 4-million-vehicle industrial belt, aiming to support Henan's goal of building a trillion-yuan new energy vehicle cluster. Kaifeng already hosts Chery, BYD, SAIC, Yutong, and Nissan within a 50-kilometer radius, offering strong local supply advantages.
Chen Shihua, another CAAM official, outlined the current state of China's auto parts industry, noting rapid progress in electrification, intelligence, and connectivity. However, he identified six challenges: intense competition squeezing profits, imbalance between technology investment and returns, pressure on small and medium enterprises, rising tariffs and compliance costs, insufficient supply chain resilience, and a shortage of high-end talent. He recommended strengthening industry self-discipline, improving payment terms, and boosting innovation and global standards participation.
The conference also featured the pre-release of a blue book on the intelligent cockpit industry, compiled by CAAM and Beijing University of Technology. The report argues that China's smart cockpit sector has shifted from feature competition to platform competition, with key control points in computing power, interfaces, updates, and data security. It identifies 2026-2027 as a critical window for strengthening the industry's foundations, including high-end chips and basic software.
According to D1EV, the conference underscored a collective push to build a more resilient and globally competitive supply chain, with a clear focus on innovation and collaboration.
