Foreign firms deepen integration into China's green manufacturing drive

SHENYANG - The recent production of Michelin's 100 millionth passenger tire at its Shenyang plant in Northeast China's Liaoning province underscores the deepening synergy between foreign enterprises and the country's manufacturing sector, particularly in advancing the green transition.

This milestone marks three decades of Michelin's growth in China, which has become the company's largest and most advanced production base worldwide.

The heavier weight and instant torque of electric vehicles (EVs) place greater demands on tires, making them crucial for overall performance and battery efficiency. Michelin's newly launched series is specifically designed for EVs, focusing on energy efficiency, safety and noise reduction through optimized tread patterns and advanced materials.

"As new energy vehicles (NEVs) and smart driving are rapidly accepted, tires will be closely tied to the vehicle's overall performance, battery range, and driving experience. Users now demand not just safety but also greater energy efficiency, quietness and intelligence," said Matthew Ye, president and CEO of Michelin Greater China & Mongolia.

Michelin currently holds over 30 percent of China's high-end NEV tire market and is partnered with numerous local automakers.

China's NEV output has led globally for a decade, supported by innovation and a robust industrial chain. Michelin has invested over 12.5 billion yuan ($1.76 billion) in Shenyang since 2010, enhancing flexible manufacturing to cut order response times from days to just one.

Michelin's growth in China is a microcosm of the trend of foreign enterprises integrating into the country's manufacturing ecosystem. In recent years, an increasing number of multinational automakers have positioned China as a key hub in their global industrial strategies, with the booming NEV market continuing to attract further investment and expansion from overseas companies.

In Shanghai, Tesla's first energy storage super factory project outside the United States has officially commenced production; BMW Group's largest global production base is in Shenyang, where its "Neue Klasse" models will roll off the production line in 2026, and Volkswagen Group has established its largest R&D center outside German headquarters in China, focusing on intelligent connected vehicle R&D.

Foreign enterprises are increasingly embedding themselves in China's local industrial chain, promoting the two-way flow of technology, capital, and innovation elements.

"Higher environmental standards, faster tech updates, and fierce global competition bring challenges but also broader cooperation space," Ye said, expressing confidence in China's high-end manufacturing future.