Last night, I chatted with a friend in Japan, who shared something quite interesting: BYD is now taking technologies developed specifically for the Japanese market and pushing them back out globally.

At the end of July this year, BYD launched a compact electric vehicle called "Racco" in Japan. The car measures no more than 3.4 meters in length and 1.48 meters in width. Fitting batteries and various electrical components into such a small frame while maintaining interior space and crash safety was once considered an insurmountable challenge by industry experts.

BYD’s solution? Developing their own proprietary battery pack called “X-PACK,” which integrates components like inverters—previously mounted at the front of the vehicle—into the battery unit itself, then placing it under the chassis. This clever design resolves the spatial dilemma. Now, the expertise honed in Japan is being applied to small electric vehicles and exported to Europe, Southeast Asia, and Latin America.

My friend remarked that in the past, China exported cars; now, even technology solutions are being exported overseas.

This is just one facet of China’s automotive global expansion. In markets like Latin America, Southeast Asia, and the Middle East—once the exclusive domain of European and Japanese automakers—Chinese vehicles are increasingly common. BYD has already become the second-best-selling brand in Brazil, and Chinese electric vehicles in Mexico have surged nearly 17-fold over the past two years. The strategy has evolved too—from simple vehicle exports to full-fledged “ecosystem export,” catching Japanese rivals off guard.

Data speaks volumes: domestic vehicles exported 1.043 million units in July alone, up 81.3% year-on-year; cumulative exports for the first seven months reached 6.14 million units, firmly securing China’s position as the world’s top exporter. It's not just automobiles—60% of Japan’s home appliance market is now dominated by Chinese brands; Europeans queue up to buy Chinese air conditioners; American companies scramble to adopt Chinese AI.

Many people don’t feel these international shifts deeply, but changes in China’s domestic consumer market reveal how far domestic brands have come. Domestic cars now hold 70% of the market share; Chinese home appliances dominate over 85% of the domestic market; Anta has become China’s leading apparel brand; Li-Ning and Tebobo see rising sales on discount platforms like VIP.com. Many Chinese clothing brands already offer high quality, and when combined with platform discounts, they drive even greater consumer return.

Previously, Japanese media pointed out that Chinese brands were sweeping into Japan—but the scope was still underestimated. In my view, the old label for Chinese manufacturing—“cheap”—has now transformed into “value,” and even “benchmark.”

Original article: toutiao.com/article/1875037616670856/

Disclaimer: The views expressed in this article are those of the author.