Multinationals involved in the new energy vehicle sector highlighted the opportunities created by China's booming NEV industry at the recent seventh Qingdao Multinationals Summit held in East China's Shandong province.

"China is one of the most important markets for Avanci. It is the world's largest automotive producer and the leader in electric and connected vehicles. Without China, our mission to simplify global licensing would be incomplete," Uta Schneider, vice-president of global government affairs at Avanci, said in an interview with Xinhua on the sidelines of the summit.

Moreover, according to Schneider, China is a powerhouse of standard-essential patent innovation. Many Chinese companies are becoming significant patent holders. "China is not just a market for us. It is a critical partner to us in shaping how connectivity is licensed globally," she said.

Headquartered in the United States, Avanci is a patent licensing company that provides licensing services to smart vehicle manufacturers worldwide. In 2018, just two years after its founding, Avanci began offering licensing services to Chinese technology companies and automakers.

Schneider was particularly impressed by the speed and scale of innovation in China's automotive sector. "From my base in Brussels, I can see this transformation firsthand. Chinese vehicles are increasingly visible on European roads, competing confidently with their global peers on quality, innovation and value," she said.

Regarding the company's latest development in China, Schneider said that Avanci has established offices in Beijing and Shenzhen, with its local team continuing to expand. Several Chinese NEV manufacturers have already joined the company's vehicle licensing platform.

After years of sustained growth, China's NEV industry has developed a fully integrated supply chain and achieved a combination of cost competitiveness and rapid innovation. In 2025, domestic production and sales of NEVs both exceeded 16 million units, with NEVs accounting for over 50 percent of new car sales in the domestic market.

China's rapidly expanding NEV industry has created new opportunities for multinational companies. In response, a growing number of global firms have stepped up their investments in China's NEV and automotive components sectors.

For example, an EV project of Smart, a brand jointly developed by Mercedes-Benz and China's Geely Holding Group, was established this year in Jinan, the capital city of Shandong. Tong Xiangbei, global CEO of Smart, said during the summit that the brand has successfully gained a foothold in both the Chinese and European markets by leveraging full-fledged local supply chains and supportive policies.

A broader shift is underway among multinational companies operating in China. Rather than focusing solely on product sales, many are becoming increasingly embedded in the country's NEV innovation ecosystem, adopting deeply localized strategies that span the entire value chain, from research and development to manufacturing, application and after-sales services.

This trend is evident in a series of investments. For instance, US automaker Tesla has established Shanghai Megafactory, a facility dedicated to manufacturing energy-storage batteries, in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone in East China.

Volkswagen and Chinese manufacturer FAW, meanwhile, have established an NEV R&D center in Hefei, East China's Anhui province, and continue to expand their lineup of electric vehicles in China.

Beyond deepening their presence in China, some multinational companies are also partnering with Chinese firms to expand their global footprint in the NEV industry. Last year, multinational automaker Stellantis and China's CATL broke ground on a large-scale lithium iron phosphate battery plant in Spain.