Nikkei Survey: Chinese Companies Expand Global Market Share in 40% of Product Categories
Claire Weston
A Nikkei analysis of 67 major product and service categories found Chinese companies expanded global market share in roughly 40% of them, with EVs and digital devices leading the gains — a sign that Chinese manufacturing is pushing beyond legacy industries into higher-value territory.
Share gains in 40% of categories — what does that number mean?
Of 67 categories surveyed, Chinese firms rank in the global top five in 37. Of those, 25 saw share gains — about 70%.
Only 11 categories saw share declines, down from 15 in 2024. This means → the expansion front is widening while the retreat front is narrowing.
In plain terms = for every ten global categories where Chinese firms compete, seven are gaining share and only three are losing it.
EVs and batteries — who is leading?
In EV batteries, CATL held the top spot at 40.8%, up 4.2 percentage points year on year. BYD ranked second at 17%, up 1.2 points. Chinese firms' combined share reached 57.8%.
This means → nearly six in ten EV batteries worldwide now come from Chinese makers, squeezing South Korea's LG Energy Solution and Japan's Panasonic further.
In finished vehicles, BYD overtook Tesla — 14.5% versus 11.3% — to become the global No. 1. A 100% U.S. tariff on Chinese EVs has all but shut the American market, yet BYD pivoted to Southeast Asia, where Chinese brands hold over 20% of Thailand's EV market.
Digital devices — how are Huawei, Lenovo, and Xiaomi closing the gap?
In smartwatches, Huawei's share rose 4 points to 17%, narrowing the gap with leader Apple (23%) to just 6 points.
In tablets, Apple leads at 35% but slipped 1 point; Huawei, Lenovo, and Xiaomi each gained 1–2 points. This means → Chinese brands are chipping away at top-tier share across multiple consumer-electronics lines simultaneously.
Surveillance cameras were a rare retreat: Chinese firms hold four of the top five spots yet their combined share fell 1.9 points.
Why are U.S. firms losing share?
Of 42 categories where U.S. firms rank in the top five, 26 saw share declines — EVs, routers, and servers fell the most.
The U.S. at one point imposed tariffs as high as 145% on Chinese goods. Chinese firms offset the blow by boosting exports elsewhere; China's 2025 trade surplus hit a record of roughly $1.2 trillion.
In plain terms = the tariff wall blocked sales to America, but Chinese firms rerouted goods to other markets — and the total grew even larger.
"Involution" goes global — can this competitiveness last?
PwC senior economist Naotaka Sonoda attributes China's edge to "involution" — cutthroat domestic competition that weeds out the weak and sends survivors abroad with high-quality, cost-competitive products.
Daiwa Institute of Research chief researcher Naoto Saito warns that trading partners are wary of cheap Chinese goods flooding specific sectors; safeguard measures may tighten further.
This reflects a core tension: the stronger China's cost advantage grows, the higher the risk of a protectionist backlash — continued share expansion is far from guaranteed.
Content is for reference only, not financial advice.