Core Insights - The article highlights the critical role of a small vehicle control chip, which can incapacitate a high-value smart electric vehicle, emphasizing the importance of a robust and autonomous supply chain in China's automotive industry [1] - China has become the center of the global automotive supply chain, particularly in the incremental market, with nearly 70% of global power battery installations and a significant shift from importing to exporting intelligent components [1] - Despite its central position, the industry faces structural challenges, including reliance on foreign technology and materials, necessitating a strategic focus on supply chain security and domestic substitution [1] Group 1 - The automotive supply chain's resilience is tested by three dimensions: the need for breakthroughs in key technology areas, the oligopolistic nature of upstream materials like lithium and cobalt, and the long-term dependence on non-autonomous software systems [1][2] - The traditional supplier relationship is evolving from a one-way supply model to a collaborative value creation approach, with leading automakers forming localized supply clusters to reduce costs and enhance responsiveness [2] - The strategy for international expansion must shift from merely exporting products to integrating into local systems, emphasizing a "Local for Local" approach to mitigate risks associated with foreign markets [2] Group 2 - The unique advantages of China's supply chain lie in its strong cross-industry extension and collaborative capabilities, allowing companies to diversify their applications beyond automotive [3] - The Chinese automotive supply chain is expected to evolve towards high-end, intelligent, green, and integrated development, with a focus on independent innovation and industry collaboration [3] - The modernization of the supply chain is not just about increasing value and market share but also about enhancing resilience, innovation, and collaborative capabilities [3]