People visit the booth of Toyota at the Automobile Exhibition Area during the seventh China International Import Expo (CIIE) in east China's Shanghai, Nov. 5, 2024. [Photo/Xinhua]

As the new energy vehicle (NEV) boom continues in China, global players in related sectors are eyeing a vast array of opportunities and exerting efforts to tap into this promising market.

At the 2024 edition of the China International Import Expo (CIIE), running from Nov. 5 to 10 in east China's commercial hub of Shanghai, the trend is obvious -- with innovation, openness and cooperation proving the buzzwords.

Focusing on sustainability and future mobility, the auto exhibition at the expo features 12 Fortune 500 vehicle manufacturers. Nearly 90 percent of all the brands on display showcase NEV models, and the use of recyclable and bio-based materials is increasingly common.

Unmissable opportunities

At the entrance of Toyota's display, two Crown sedans can be spotted, with this vehicle one of the Japanese auto giant's best-selling models. The pair of sedans are parked side by side, symbolizing Toyota's evolution in the Chinese market.

One of these sedans is a 1964 model, marking the company's first entry into China, while the other is the latest intelligent hybrid version, a testament to advancements in NEV technologies that have benefited the brand's growth and followed the trend in the Chinese market.

"China is now not only the world's largest automotive market in terms of volume, but also a global leader in smart and electric vehicle development," said Xu Yiming, Toyota's head for brand and communications in China.

According to official data, the NEV market share in China was just above 1 percent in 2015 but has since surged thanks to an expedited green transition of the Chinese economy.

In July this year, NEVs made history by surpassing fuel-powered vehicles for the first time in terms of market share, with retail sales nationwide hitting 878,000 units -- accounting for 51.1 percent of the total Chinese domestic market.

To leverage NEV-related innovations achieved in China, including some of the highest levels of advancement seen anywhere in the world, Toyota has established one of its largest overseas testing and R&D centers in Changshu, east China's Jiangsu Province, and recently opened an advanced technology research center in Shanghai.

"Looking ahead, especially in the fields of electrification and smart technology, our focus is shifting towards research and development (R&D) based in China," said Xu.

A few steps from the two Crown sedans is another eye-catching exhibit crowded by visitors and professional buyers, a concept electric car in the form of a robotaxi, co-developed by Toyota and Chinese autonomous driving company Pony.ai.

Featuring a pre-collision system, developed using data from 20 billion kilometers of assisted driving, the new vehicle is aimed at upscaling and commercializing fully autonomous solutions.

"We aim for the technologies developed in China to influence our R&D approach worldwide, enhancing products and technologies that can be applied across global markets," said Xu.

Besides world-renowned original equipment manufacturers, many auto parts suppliers are also eager to try their luck amid China's NEV drive.

Aptiv, a multinational developing automobile parts, is making its debut appearance at the seventh CIIE, showcasing software and hardware products developed by local teams for the local market, with two themes in accordance with the market's trend -- intelligence and electrification.

As a newcomer to the CIIE, Aptiv is flexing its tech muscle via its unique strength involving both the "brain and the nervous system" of a vehicle, providing advanced solutions to software-defined and electrified vehicles.

Highlighting the opportunities they manage to sniff out in the Chinese market, Jiang Weihao, an engineer with the company, said Aptiv chose to base operations in China to stay closely aligned with the requirements of automakers in the world's largest automobile market.

"China's manufacturing sector has matured significantly, providing a strong foundation for us to develop solutions that are cost-effective, reliable and tailored," Jiang noted, adding that several exhibits and technologies were scheduled to be launched for the first time at this year's CIIE.

Protectionism leads to dead end

Despite rosy prospects, the Chinese NEV sector still faces headwinds due to trade protectionism. The United States and the European Union (EU) have this year both unveiled exorbitant additional tariffs on Chinese electric vehicles.

At the 2024 CIIE, a major event based on openness, many industry insiders have voiced concern about such protectionist moves, while praising China's opening-up measures.

Trade protectionism disrupts international cooperation and technological progress in the automotive industry, impacting negatively on efforts in green transition and climate change collaboration, said Vice Commerce Minister Ling Ji at a sub-forum held along with the CIIE.

"Development and technological progress of the NEV industry both rely on international cooperation. Regardless of external protectionist pressures, China will remain steadfast in its commitment to openness and collaboration," Ling added.

Taking the development of China's auto industry as an example, Yin Tongyue, chairman of China's automaker Chery, said that when global players Ford, Volkswagen and Toyota entered the Chinese market, they didn't push Chinese automakers out -- instead, they energized them.

"Now, as China advances in electrification and smart technologies, we may be leading in certain areas, and it's our turn to energize others, supporting their healthy growth and smooth transition to electrification," Yin added.

Notably, China caters to its domestic market and China's NEV exports constitute a small portion of its total production. While approximately 9.59 million NEVs were manufactured in the country last year, only about 12 percent of them were exported.

Adding to the discussion, Ralph Ossa, chief economist of the World Trade Organization (WTO), noted that trade tensions and conflicts have emerged, not only concerning trade but also in areas like the green economy, environmental protection and energy conservation. Ossa also said that naturally, no one wants to see such tensions arise.

"International trade is an important part of the solution to climate change. The share of electric vehicles in total car imports was only about 5 percent in 2017. Now it is much higher," Ossa said. "And of course, China is an important part of the story."

Successful collaboration lies in finding synergy and sustainability, and cooperation and mutual benefit are advantageous for both China and the United States, said Sam Wu, president and CEO of Ford China.

"From this perspective, global automakers are eager to see China's rapid progress in the NEV sector and are open to partnerships on a global scale," the senior executive stated.