GoKawiilThe national flags of the United States and China hang on a highway in Beijing on May 13, 2026, ahead of a visit by US President Donald Trump. (Photo by Pedro PARDO / AFP via Getty Images)
Washington has been stepping up efforts to curb Beijing's technological ambitions, but from artificial intelligence to electric vehicle batteries, Chinese technology is becoming increasingly embedded in the businesses of some of the world's biggest companies.
Apple has tapped Alibaba and Baidu for AI in China, while Ford has turned to CATL for battery technology. Volkswagen has teamed up with Xpeng to develop smart EVs in China, while Stellantis is expanding its partnership with Leapmotor on EV production and joint purchasing.
Analysts say a broad shift is underway, with Chinese companies becoming sources of technology and innovation that global businesses cannot easily sidestep.
"Five years ago, China was primarily where global companies went to sell. Today, in certain sectors, it is where they go to source capability," Kitty Fok, managing director at market research firm IDC China, told CNBC.
That development comes even as Washington has expanded efforts to restrain Chinese technology.
Since blacklisting Huawei in 2019, it has imposed sweeping curbs on advanced chips and chipmaking equipment, restricting certain U.S. investments in Chinese semiconductors, quantum technology and AI, and proscribing firms including contract chipmaker Semiconductor Manufacturing International Corporation, or SMIC.
From market to technology source
China has built formidable positions across a growing number of technology industries.
Automakers including BYD, Changan and Chery accounted for nearly 63% of the global electric vehicle market in 2025, while battery makers including CATL, BYD, CALB and Gotion held close to 70%, according to Soumen Mandal, principal analyst at Counterpoint Research.
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