As noted above, the U.S. government has worked hard to keep out Chinese automakers with high tariffs and a ban on Chinese software and hardware – that even now the U.S. Congress is working to codify and expand.

Industry experts have said for years that it is impossible to keep the Chinese out forever – not least because a growing number of American consumers know that China’s automakers make the best electric cars at affordable prices.

Ford CEO Jim Farley has made no secret of his admiration for Chinese EV technology and the urgent need to compete against growing rivals like BYD and Xiaomi.

Ford is working on a family of affordable EVs it has engineered from the ground up to match the cost and ⁠efficiency of Chinese companies.

And as Reuters colleague Nora Eckert reports, in a town hall with Ford employees, Farley said the No. 2 U.S. automaker is preparing for the possibility Chinese companies could enter the American market within the next five to 10 years.

You can read all about it here.

Farley’s prediction comes just weeks after Ford Executive Chair Bill Ford said about the Chinese at an Axios event: "We can't expect to keep them out forever, and we have to ‌be ⁠able to beat them at their own game."

An image of the Sky Garden, from Volkswagen's promotional images. 

Volkswagen has had a tough time in China, where its sales fell to 2.7 million cars last year from a peak of 4.2 million in 2019 as it has fallen behind fast-moving Chinese rivals who now dominate the EV tech race.

In a great special report, Reuters colleagues Ju-min Park and Claire Fu look at how VW tried to lead the pack in China with a flying car but got left behind.

You can read all about it here.

Some of this is a familiar, behind-the-scenes story of a legacy non-Chinese automaker moving too slow as local rivals in China took off.

But VW has also faced a five-year legal battle in China, accused of infringing on trade secrets.

For many years, Western companies complained of intellectual property theft by Chinese partners.

But now they have come to dominate the EV sector and areas like flying cars, Chinese companies are now aggressively moving to protect their own intellectual property from infringements by Western automakers.

Spain wants to make Chinese EVs with EU rules- REUTERS/ Albert Gea. 

Spain has so far done well at pursuing Chinese auto and battery makers to boost its car manufacturing sector as the industry transitions to electric cars.

As Reuters colleague Victoria Waldersee reports, Spanish regions are jostling to woo Chinese firms while many of them are also pushing Brussels to lock in tough, EU-wide foreign investment rules to protect the economy from harm from a race to the bottom.

You can read all about it here.

The two-pronged approach highlights the fine balancing act for Europe in finding a strategy to deal with Chinese companies'  surging ‌imports and ambitions to expand European production without becoming a mere assembly site for Chinese technology.

After wowing Chinese consumers, a couple of years ago with its first EV, the SU7 sedan, Xiaomi’s sales have fallen short of targets in 2026 as demand has softened in the world’s largest car market.

As Reuters colleagues Ju-min Park and Qiaoyi Li report, to boost its fortunes the smartphone maker has launched a series of big SUVs, dubbed SkyNomad.

You can read all about it here.

Big vehicles like the flagship N90 Max, a seven-seat SUV that Xiaomi describes as "a house you can move", are popular in China, and the company is also trying to broaden its audience by launching it as a range extender – an EV backed by a gas-guzzling engine with a range of over 1,000 miles.

As the name “Nomad” suggests, this series of SUVs will play a role as Xiaomi gears up to follow its Chinese rivals into overseas markets.