China's Auto Industry Addresses Chip Export Compliance Risks for First Time, with 15 Automakers and Yangjie Tech Devising Strategies

On the afternoon of July 15, 2026, the "Seminar on Supply Chain Risks for Chinese Automakers Going Global," hosted by the China Association of Automobile Manufacturers (CAAM) and organized by Yangjie Technology, was held in Yangzhou. Li Shaohua, Deputy Secretary-General of CAAM, attended the event, along with Chen Runsheng, CEO of Yangjie Technology, and his executive team. The seminar brought together representatives from 15 major Chinese automakers—including FAW, Dongfeng, Changan, SAIC, GAC, and Chery—as well as numerous leading Tier 1 suppliers from China and abroad, and international legal experts from Zhong Lun Law Firm. The discussions centered on supply chain security and cross-border compliance challenges facing Chinese automakers as they expand overseas. Li Shaohua noted that the industry currently faces common issues such as trade barriers and supply chain risks, while emphasizing China’s growing influence in shaping global trade rules. Chen Runsheng highlighted that, amid accelerating automotive globalization, core components like power semiconductors are under mounting pressure from overseas compliance requirements and geopolitical tensions. As a domestic leader in automotive-grade power semiconductors, Yangjie Technology reported an annual production capacity of 30 billion automotive electronic power devices by 2026, with over 13 billion units shipped in the first half of the year. The company is also actively expanding into emerging sectors such as AI data centers and energy storage. During the seminar, Fang Sunya, Legal Manager at Yangjie Technology, disclosed the company’s recent response to an EU trade-related incident: - On April 27, it issued a clarification statement; - On May 4, it filed an application with China’s Ministry of Commerce for an anti-blocking order; - On June 11, it submitted an administrative review request to the Council of the European Union; - On June 26, it initiated litigation before the General Court of the European Union and requested expedited proceedings. On June 15, the Council of the EU granted a conditional exemption—allowing contracts signed before April 23, 2026, to remain valid until year-end and permitting the industry to procure its critical components until March 16, 2027. Jia Shen, Senior Consultant at Zhong Lun Law Firm, explained that Yangjie had been placed on the EU’s “asset freeze list,” which imposes financial transaction restrictions—not product export bans. Based on this, he categorized supply chain risk levels: direct transactions with sanctioned entities carry high risk; Tier 1 suppliers integrating and exporting such components face low risk; and vehicle exports incorporating these parts entail even lower risk. He warned that the EU is preparing its 21st round of sanctions, which could further disrupt payment settlements, material supplies, and the use of intelligent driving components. Wang Xiaoguang, Head of Legal Affairs at Huawei’s Intelligent Automotive Solutions (HIAS), noted that the EU is classifying connected and intelligent vehicles as “high-risk applications.” A draft amendment to the EU Cybersecurity Act proposes establishing a “list of high-risk suppliers,” covering 18 categories of critical assets including semiconductors and autonomous driving technologies. He recommended that companies establish long-term legal monitoring mechanisms to navigate regulatory uncertainty. In the discussion session, multiple automakers shared common challenges: difficulty implementing export control prevention measures, complex intellectual property protection, and insufficient global legal resources. SAIC Group attributed European measures to industrial competition; Dongfeng Group pointed to a shortage of legal talent in emerging markets; Changan stressed the high complexity of multi-jurisdictional compliance decisions; GAC and BAIC called for joint development of data compliance and cloud infrastructure; and Chery emphasized that compliance is essential for sustainable overseas growth. In response, Li Shaohua stated that CAAM has already launched initiatives on ESG, carbon neutrality, and overseas regulations, and will soon build a dedicated compliance platform. The following day, Reuters reported that the EU is forming an emergency task force to address potential trade conflicts with China. In the first half of 2026, China exported 5.096 million vehicles, a 65.3% year-on-year increase. This seminar marked CAAM’s first specialized forum focused on internationalization risks for automotive chips, signaling a strategic shift across the industry—from reactive responses to systematic defense. Participants reached a consensus on establishing a regular compliance dialogue mechanism to promote regulatory interpretation and case sharing, helping companies avoid “trial-and-error in isolation.” Concurrently, Yangjie Technology is advancing its overseas footprint, constructing a production base in Vietnam that integrates wafer fabrication and packaging/testing, aiming to realize an operational model of “Made in China for China, Made overseas for the world.”