China's EV Sector Invests More in Overseas Factories Than Domestic Ones for the First Time

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Aug 18 2025

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Source: CNBC

Chinese Electric Car Investments: Chinese electric car companies are increasingly investing in overseas factories, with investments abroad surpassing domestic ones for the first time since 2014, primarily focusing on battery manufacturing.
Competition and Market Expansion: The shift towards international investment is driven by intense competition at home and higher tariffs on exports, as well as a need to gain support from foreign governments for market expansion.
Recent Developments: Notable projects include Great Wall Motor's new factory in Brazil and BYD's production start in Brazil, while Envision has begun operations in France, although only 25% of announced overseas plans have been completed.
Regulatory Challenges: Chinese firms face increasing scrutiny from Beijing regarding technology leakage and job losses, which may lead to tighter controls on outbound investments in strategic sectors.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.