China’s New Energy Industry Gains Ground in Global Value Chain: The Case of BYD Auto

Abstract

In recent years, China’s new energy industry has experienced rapid growth, with the China New Energy industry now representing China’s innovation and transformation. China has progressed from “catching up” to “leading the way,” having shaped the global pattern of new energy. Especially in the automotive industry, BYD has effectively reduced its reliance on the global supply chain through a vertical integration strategy and increased its self-reliance and control capabilities in the new energy industry. This study analyses the implementation pathways and challenges of the strategy from three aspects: technological breakthroughs, full industrial chain arrangement, and globalization construction. Research indicates that BYD’s internal development and production of core components such as batteries and electric machines have obviously enhanced the risk resistance of its supply chain. However, the company still relies on external suppliers for high-end chips and key mineral resources. Meanwhile, European Union anti-subsidy investigations and geopolitical factors have created certain challenges for internationalization. Therefore, although vertical integration has improved BYD’s control over its industrial chain, it still requires continuous technological innovation, diversified resource strategies, and adaptive localization to achieve sustainable supply chain security and global competition. Through independent research and development and vertical integration, BYD has transitioned from a low-end to a high-end brand, redefining the status of “Made in China” in the new energy vehicle field. This brings significant reference value to the overseas strategies of other Chinese enterprises.