CATL(SZ:300750) Sou Hu Cai Jing·2025-10-09 14:49Core Insights - A group of top VC investors from Europe and the US visited China to assess the competitive landscape in clean technology, ultimately returning with a pessimistic outlook and a "no-invest" list [1][14]. Group 1: Scale and Speed - The journey was focused on observing factories and R&D centers, emphasizing the scale and speed of Chinese manufacturing capabilities [1]. - At CATL, the investors witnessed highly automated production lines that dominate the global battery market, realizing the challenge of replicating such efficiency in the West [2][3]. - CATL's advancements in battery technology, including the development of sodium-ion and solid-state batteries, highlighted the rapid pace of innovation in China compared to the slower processes in the West [4][11]. Group 2: Ecosystem and Collaboration - At Marvel-Tech in Shanghai, the investors learned about the advantages of China's integrated supply chain, which allows for rapid prototyping and low costs, contrasting with the lengthy processes in Europe [6][8]. - The visit to GCL-Poly in Kunshan showcased the swift iteration of next-generation solar technologies, further emphasizing China's ability to compress development timelines [10][11]. Group 3: Investment Landscape - The investors concluded that sectors like battery manufacturing and solar energy hardware are dominated by Chinese companies, making it difficult for Western firms to compete on cost and scale [14][16]. - The "no-invest" list included key areas where Chinese firms have established significant advantages, such as battery production costs and solar technology [14][16]. Group 4: New Paradigms - A new collaborative paradigm emerged, suggesting that Western investors should focus on software and service innovations rather than hardware manufacturing, which is increasingly dominated by China [19][21]. - The concept of "Western Software, Eastern Hardware" reflects a strategic shift towards leveraging Chinese manufacturing capabilities while enhancing value through software and innovative business models [19][21][25]. Group 5: Future Implications - The insights gained from this trip signal a shift in global investment strategies, with a focus on collaboration rather than competition in areas where China has a clear advantage [25][26]. - The journey highlighted the need for Western companies to adapt to a more integrated and complex global economy, emphasizing the importance of humility and cooperation [29].