battery supply chain

China EVs Face Middle East Shock, Double Down on AI

China’s EV industry is facing a two-front challenge: Middle East tensions are threatening exports, shipping costs, and key raw-material supplies, while competition is rapidly shifting toward AI chips, autonomous driving, and software-defined vehicles. With China’s 2025 auto exports exceeding 7 million units and the Middle East accounting for about 1.39 million, the latest developments show why brands like BYD, NIO, Chery, and SAIC must balance global resilience with deep investment in compute and automotive semiconductors.