Amid the threat of U.S. tariffs, Chinese auto and battery manufacturers are leading in the quality of electric vehicle patents, outpacing their Japanese and American rivals. This competitive edge provides them with significant opportunities to license their technology. Notably, Chinese companies like BYD and CATL may hold fewer patents, but their technological influence is substantial, as reflected by the high citation rates and the extended remaining life of their patents.
China’s dominance in EV patents, particularly in charging technology and battery innovation, could provide strategic advantages in navigating trade barriers like potential Trump tariffs. Here’s how:[vc_column_text css=”.vc_custom_1745911302243{padding-top: 20px !important;}”]
Patent Powerhouse
China has cemented its position as the global leader in EV innovation, with 41,011 charging and battery-swapping patents filed between 2010–2022, far surpassing competitors. BYD alone holds 13,000+ EV-related patents (2003–2022), including 6,500+ battery patents.[/vc_column_text][vc_column_text css=”.vc_custom_1745911319240{padding-top: 25px !important;}”]
Global Market Dynamics
Despite the tariff challenges, Chinese automakers are expanding their global footprint. BYD, for example, plans to export 800,000 of the 5.5 million vehicles it expects to produce in 2025, focusing on markets in Europe and South America . This expansion is facilitated by China’s competitive advantage in EV technology and manufacturing.[/vc_column_text][vc_column_text css=”.vc_custom_1745911337129{padding-top: 25px !important;}”]
Policy-Driven Innovation ecosystem
$230B+ in subsidies (2009–2023) and state-backed R&D have fueled China’s patent surge, enabling breakthroughs in solid-state batteries (36.7% of global patents). This ecosystem ensures continuous innovation, even under tariff pressures[/vc_column_text][vc_column_text css=”.vc_custom_1745911358916{padding-top: 25px !important;}”]
IeB Perspective
IeB analyst findings highlight how automakers might handle the tariffs proposed by US President Donald Trump by using patent licencing instead of constructing new factories in the US. By granting a local manufacturer a licence, the patent owner can avoid tariffs and get royalties, for example, the Chinese business and Ford Motor Company are partners on a U.S. electric vehicle battery plant. General Motors is apparently in negotiations to purchase batteries from a plant that Japanese supplier TDK is building in the United States, and it is anticipated that this plant will use CATL’s technology. In conclusion, China can influence global market dynamics and potentially mitigate the impact of tariffs on its EV industry by leveraging its intellectual property assets[/vc_column_text]
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