Core Viewpoint - The Chinese power battery industry is facing dual challenges of market pressure and intellectual property barriers as it seeks to expand internationally, particularly in the context of recent competitive moves by South Korean companies and legal setbacks for domestic firms [2][8]. Group 1: Market Dynamics - The international market is becoming the next battleground for the Chinese electric vehicle supply chain, with overseas investments projected to reach $16 billion in 2024, surpassing domestic investments of $15 billion for the first time [3]. - Leading Chinese battery manufacturers, such as CATL, are accelerating their overseas expansion, with significant investments in factories across Europe and Southeast Asia [3][4]. - By mid-2025, Chinese companies are expected to occupy six of the top ten global power battery manufacturers, holding a combined market share of 68.7% [4]. Group 2: Competitive Landscape - Chinese companies are leveraging their complete supply chain and cost control advantages to compete effectively in the mid-to-low-end market, while also investing in technology research and development [5]. - Despite the rising market share of Chinese firms, established international players like LG Energy and Panasonic still maintain advantages in high-end technology and brand recognition [5]. Group 3: Challenges in International Expansion - Chinese battery companies face significant policy barriers and intellectual property risks when entering international markets, particularly in the U.S. and Europe [8][9]. - The U.S. has implemented restrictive policies that limit the participation of Chinese suppliers in its market, while European policies are more cautious, leading to slower expansion for Chinese firms [8][9]. - Legal challenges, such as the patent dispute involving XINWANDA and LG Energy, highlight the vulnerabilities of Chinese companies in navigating international intellectual property laws [8][9]. Group 4: Strategic Recommendations - To overcome these challenges, Chinese battery companies need to seek national support to address discriminatory policies and create a fair competitive environment [11]. - Companies should focus on markets with favorable policies, such as Southeast Asia and countries involved in the Belt and Road Initiative, to build operational experience and expand their presence [12]. - Continuous investment in technological innovation, particularly in next-generation technologies like solid-state batteries, is essential for maintaining a competitive edge and achieving a transition from "product export" to "technology export" [13].