In the first half of 2026, China's car exports reached 4.059 million units, up 63% year-on-year. At this growth rate, breaking 10 million units for the year is almost a certainty — by then China will become the world's first automotive giant to export over 10 million units annually, equivalent to 2.5 times Japan's volume.

But another set of data is not looking so good. From January to May this year, domestic passenger car retail sales reached 7.099 million units cumulatively, down 19.5% year-on-year. Among the five major independent brands, BYD sold 1.8085 million units in the first half, down 15.72% year-on-year. Growth relies mostly on exports. This isn't prosperity; it's like 'starving at home, relying entirely on grabbing from outside'.

Let's first see just how fierce the exports are. Chery exported 940,000 units in half a year, securing the top spot, with a share as high as 74.3% — 3 out of every 4 cars sold were exports. BYD followed with 790,000 units, with 174,800 units exported in June alone. What was most unexpected wasn't the volume, but the direction. In May data from 31 European countries, these five — BYD, SAIC, Geely, Chery, Leapmotor — sold a combined 138,400 units, up 65% year-on-year, surpassing the total of six Japanese brands like Toyota, Nissan, and Honda for the first time. The market share of Chinese brands in Europe jumped directly from 5.6% in May last year to 10.7%. Doubling in one year isn't growth, it's swallowing whole.

But Europeans lost patience. On July 1, the EU's final anti-subsidy duties on Chinese pure electric vehicles officially took effect — 17.4% for BYD, 18.8% for Geely, 35.3% for SAIC, plus a 10% base tariff, pushing the combined tax rate for some manufacturers above 45%. Tougher still, the EU is brewing to include plug-in hybrids in the tax scope. Over the past year, plug-in hybrids were the core channel for Chinese manufacturers to bypass pure EV tariffs; now they're trying to block all paths. But China is not someone to be trifled with. The Ministry of Commerce immediately issued a final anti-dumping ruling on EU pork, with rates ranging from 4.9% to 19.8% for five years. China is the world's largest pork consumer market; the EU's pig feet, ears, and offal rely entirely on China to digest. This blow targets the vote banks of agricultural states. Countermeasures on cognac and dairy products are also coming. Wine merchants in France's Cognac region are already shaking.

But can tariffs really stop us? The Chinese auto manufacturers' response is simple — build factories right at your doorstep. BYD is building a factory in Hungary to start production next year, Chery is laying out plans in Brazil and Spain, and SAIC is deepening roots in Thailand. If tariffs block prices, I'll just bypass your tariff wall. It's exactly the same script as Japanese automakers frantically built factories in the US after the US imposed tariffs back then. The only difference is that Chinese cars going overseas are faster, larger in volume, and the industrial chain is more complete.

Overall, the slump in the domestic car market forces all brands to go outward, and exports have made up for all the growth lost domestically. But the EU's 45% tariff is just the first hurdle; behind it, the door to the North American market is tightly shut, and the fortress of Japanese cars in Southeast Asia won't be breached in a day. The race for Chinese car exports has shifted from 'grabbing incremental growth' to 'fighting hard battles'. 10 million units is inevitable, but the tariff walls, political barriers, and localization difficulties on the road are getting harder and harder.