Counterintuitively, U.S. and global auto firms need to collaborate with Chinese suppliers to reduce strategic dependency. The model involves onshoring Chinese hardware and manufacturing expertise while maintaining national control over sensitive AI software and networks, creating a strategic "co-opetition."
The convergence of autonomous, shared, and electric mobility will drive the marginal cost of travel towards zero, resembling a utility like electricity or water. This shift will fundamentally restructure the auto industry, making personal car ownership a "nostalgic privilege" rather than a daily necessity for most people.
While government support helps, China's rapid adoption of Level 2+ smart driving is primarily driven by fierce domestic EV competition. In a crowded market where over half of new car sales are electric, automakers use advanced autonomous features as the most effective means to differentiate and attract consumers.