On the afternoon of July 15, 2026, Yangzhou hosted a major industry gathering: the "Vehicle-Chip Synergy, Strength in Unity | Seminar on Supply Chain Risks for Chinese Auto Exports." Organized by Yangjie Technology under the auspices of the China Association of Automobile Manufacturers (CAAM), the event drew CAAM Deputy Secretary-General Li Shaohua, Yangjie Technology CEO Chen Runsheng, and Vice Presidents Xu Xiaobing and Wang Jinxiong, alongside their core teams. Image Source: Yangjie TechnologyThe venue was fully occupied. Executives from 15 automakers—including FAW, Dongfeng, Changan, SAIC, GAC, and Chery—joined leaders from top-tier global suppliers and legal experts from Zhonglun Law Firm. Representatives from across the entire industrial chain convened to address supply chain security and find pathways through the complexities of cross-border compliance.Industry Leaders Gather to Discuss New Challenges in Global ExpansionCAAM’s Li Shaohua opened the seminar with an analysis of the current state of Chinese automotive exports, highlighting shared challenges such as supply chain risks and trade barriers. He set a professional tone for the seminar, arguing that the shape of future global trade rules will depend on China’s own capabilities and its track record in global trade. "China once lacked the standing to help write those rules," Li noted. "Now, we have a voice in the process."CAAM Deputy Secretary-General Li Shaohua; Image Source: Yangjie TechnologyYangjie Technology CEO Chen Runsheng delivered a welcome address, greeting the guests. He noted that while the globalization of domestic automakers is accelerating, core components like power semiconductors face significant challenges: overseas compliance hurdles, shifting trade policies, and geopolitical risks.Yangjie Technology CEO Chen Runsheng; Image Source: Yangjie TechnologyHaving spent years deep in the automotive-grade power semiconductor sector, Yangjie Technology organized the event to build a platform for industry coordination. The goal is to break down silos between automakers and chipmakers, leveraging the capabilities of domestic chips and experience in overseas compliance to strengthen the foundation for Chinese vehicles going global.A leading player in China's power semiconductor discrete device market, Yangjie Technology has consistently ranked in the top three of the "China Top 10 Semiconductor Power Device Companies" for years. By 2026, the company’s annual production capacity for automotive electronic power devices reached 30 billion units, with shipments topping 13 billion in the first half of the year alone. Beyond automotive electronics, Yangjie is expanding into emerging sectors like AI data centers, energy storage, and embodied intelligence, with several products already in application for AI servers.During the keynote session, Fang Sunya, Legal Manager at Yangjie Technology, reviewed a recent EU trade incident involving the company. She discussed the entire handling process, the latest developments, and the company's established response protocols.Fang revealed that an emergency task force led by the chairman and CEO was formed the very next day. On April 27, the company issued a clarification statement to the capital markets, asserting "no violations occurred and we will defend our rights legally." By May 4, an application for a blocking order was submitted to the Ministry of Commerce, followed by a first meeting on May 7 between the Ministry’s Administrative Bureau and the EU Directorate-General for Trade.On the administrative front, Yangjie Technology formally submitted an application for administrative review to the EU Council on June 11. On the judicial front, the company filed a lawsuit with the EU General Court on June 26 to annul the decision, simultaneously requesting an accelerated procedure and priority processing. The aim is to reduce the typical 18-to-24-month review cycle to just 8 to 10 months.The latest development came on June 15, when the EU Council issued a resolution granting Yangjie Technology a conditional exemption. Business booked before April 23, 2026, may continue until December 31 of that year. Additionally, to ensure supply chain diversification, the industry can procure key components and make payments to the company until March 16, 2027. "The nine-month exemption represents a phased success for us, and we will continue to advance our work," Fang said.Chen Runsheng also outlined Yangjie’s global strategy. "We have a major base in Vietnam, including a wafer fab and a packaging and testing plant," he said. "Moving forward, we aim to realize a business model of 'In China for China, Overseas for Global' to mitigate the risks of global trade conflicts."Precise Interpretation: Clarifying Risk Levels Across the Supply ChainJia Shen, a senior advisor at Zhonglun Law Firm, used Yangjie’s real-world case as a basis to interpret new EU sanctions regulations.He argued that so-called "compliance anxiety" must be grounded in precise legal analysis. EU sanctions fall into two categories: the "Asset Freezing List" and the "Export Control List." Yangjie Technology was listed in the former, which is essentially a ban on financial transactions—not a restriction on product exports. The prohibition targets the transaction itself, not the physical movement of goods.Zhonglun Law Firm Senior Advisor Jia Shen; Image Source: Yangjie TechnologyBased on this, Jia defined distinct risk levels across the supply chain. Direct transactions between sanctioned entities and EU-based subjects clearly fall under jurisdiction. However, it is low risk for a Tier 1 supplier to purchase Yangjie devices, integrate them into modules, and then export to the EU, as the product has undergone substantial processing and there is no direct transaction with the sanctioned entity. The risk is even lower for finished vehicles equipped with these parts.Jia offered an analogy: "People are conflating the flow of commerce with the flow of logistics." In reality, as long as the transaction chain does not involve direct or indirect funding of the sanctioned entity, the export of Tier 1 products containing Yangjie devices—or finished vehicles—remains within manageable limits.Jia also noted that EU sanctions have evolved from the 11th round, which began targeting Chinese companies, to the 20th round, which reached a historical high. A 21st round is currently in development. Potential impacts include rising settlement risks, tightened restrictions on automotive materials, and increased risks surrounding the diversion of smart driving and "three-electric" (battery, motor, electric control) components.Yinwang Legal Director Wang Xiaoguang; Image Source: Yangjie TechnologyWang Xiaoguang, Legal Director at Yinwang, shared insights on legal landscapes in key overseas markets, highlighting areas requiring attention during expansion and their potential impact on enterprises.He pointed out that the EU is shifting from traditional trade remedies to a comprehensive "security toolbox." In January 2026, the European Commission released the draft amendment to the Cybersecurity Act (CSA 2.0). For the first time at the legislative level, it introduced the concept of "high-risk countries" and established a "high-risk supplier" list. The scope now covers 18 categories of critical assets, including mobile and fixed networks, power, autonomous driving, cloud services, semiconductors, and medical equipment. Intelligent connected vehicles are explicitly listed as high-risk applications. Facing these shifting variables, Wang suggested building long-term legal tracking and reserves to navigate the uncertain overseas environment.Collaborative Discussion: Building Consensus for a United Global PushDuring the open discussion, guests exchanged views on addressing supply chain risks and breaking through bottlenecks. Perspectives from automakers, chipmakers, legal firms, and industry associations were exchanged constructively. They discussed core pain points—chip supply, overseas tariffs, compliance certification, and geopolitical trade—forging a consensus on coordinated supply chain development.Image Source: Yangjie TechnologySeveral participating companies called on the association to establish a normalized platform for legal compliance exchange, a global legal resource database, and country-specific regulatory guides.A representative from SAIC stated directly: "The fundamental reason for Europe's measures is that Chinese companies are gaining significant market share. Europe still has a powerful auto industry, and it remains critical to their economy." This competitive dynamic means compliance is no longer just a "legal issue"—it is an "industrial competition issue."Shi Mengdan, Director of Investment and Legal Affairs at Dongfeng Group, highlighted three common industry pain points: the difficulty of implementing preventive measures for export controls, intellectual property protection and non-infringement during expansion, and the lack of a mechanism for sharing global legal resources. "Dongfeng exports to over 100 countries," she said, "and in some emerging markets, legal resources are scarce. It feels like every company has to learn independently."Hu Anna, Head of Global Compliance at Changan Automobile, shared practical insights from the field. She noted that Changan has built a global legal compliance management system covering export control and antitrust since 2024. Yet in practice, "a single action may trigger legal implications across multiple countries and regions. You cannot just consider China or the US when making decisions; you must balance requirements across multiple jurisdictions." The complexity is significant, she argued, calling for the association to lead an overseas legal exchange platform to promote industry-wide sharing of regulatory interpretations and cases.A representative from GAC Group asked: "Issues like data compliance and cloud platform deployment require massive investment from every company. Can we build and share these?" A representative from BAIC Group echoed similar demands: as business shifts from traditional trade to localized operations, companies are no longer just focused on sales contracts, but on full-chain compliance issues like product market access, subcontractor management, and local corporate governance.Zhang Jinsong, Vice President of Chery Automobile’s Global Legal Center, pointed out: "Chinese automakers have strong product competitiveness, but to develop sustainably overseas, compliance is a core competency. We must build a robust compliance system and follow local regulations to gain a firm foothold."After listening to the various opinions, Li Shaohua stated that the association is already working on ESG, carbon neutrality, quality, and overseas standards and regulations. Next steps include building a dedicated compliance work platform.Gathering Strength for the Long Haul, Continuously Empowering Chinese Auto GlobalizationOn July 9, CAAM released export data for the first half of 2026: 5.096 million vehicles, a 65.3% year-on-year increase. The day after the seminar, on July 16, Reuters reported that the EU was forming an emergency working group to handle various crises, including a potential trade conflict with China.At the seminar’s opening, CAAM’s Li Shaohua remarked that while the association does extensive work on supply chains, this was the first dedicated meeting on international risks in the chip sector. "The real idea behind this meeting is to consider the big picture: the industry’s push for globalization, and the massive impact of shifting global trade rules and international relations. How do we adapt to these environmental changes? How do we ensure the industry maintains a healthy, sustainable development trend as it globalizes?"This inaugural seminar carried significance far beyond a typical private meeting—it marked a shift for the Chinese automotive supply chain from passive response to active layout, and from isolated breakthroughs to systemic defense.Yangjie Technology’s CEO Chen Runsheng told the gathering: "The semiconductor industry has become complacent. We intended to rely on past success, but this incident taught us to regain our footing and continue our efforts." That sentence encapsulates the current state of Chinese automotive exports: the industry is advancing, but this "stress test" serves as a reminder to everyone—the calmer the waters, the more necessary it is to prepare for storms ahead.Faced with a volatile international market, the seminar reached a key consensus: there is no standard answer for going global, but the industry must find the answer together. Participating companies unanimously called for a normalized compliance exchange platform to promote regulatory interpretation and case sharing, ensuring no company has to "navigate trial and error independently." This is the direction CAAM and Yangjie Technology are pushing—to truly organize the upstream and downstream of the supply chain, using Yangjie’s practical exploration to establish a replicable compliance path for the entire industry.The "stress test" for Chinese automotive exports has only just begun. This seminar in Yangzhou may well become a turning point where the industry moves from "emergency response" to "systematic defense." From the collective gathering of 15 automakers to deep, multi-dimensional exchanges, the Chinese automotive industry is proving with action: the next leg of the global journey is a marathon, and it must be run collectively.As a core enterprise in domestic automotive-grade power semiconductors, Yangjie Technology remains committed to the philosophy of vehicle-chip synergy. It continues to deepen R&D and manufacturing for automotive chips while refining its global compliance risk control system. By providing reliable domestic chips and mature compliance capabilities, it aims to help the Chinese automotive industry expand steadily and sustainably in the global market. Compliance is not a constraint, but a passport for Chinese manufacturing to reach the world. And grouping together is not a slogan, but the strongest confidence for Chinese automobiles to achieve sustainable global growth.
