# Beijing Pushes Back as Chinese Carmakers Diversify Away From CATL Batteries

A publication under the industry ministry called market talk of "de-CATLisation" an overreaction after the battery maker's shares fell, while Hong Kong pulled forward the start of a supercomputing hub to mid-2027.

- Published: 2026-09-23T10:54:04.121Z
- Canonical: https://polylog.news/2026-09-23/beijing-pushes-back-as-chinese-carmakers-diversify-away-from
- Publisher: Polylog (Global desk)
- Section: tech
- Sources: [South China Morning Post](https://www.scmp.com/economy/china-economy/article/3368526/chinese-carmakers-diversify-beyond-catl-batteries-beijing-warns-market-overreaction), [South China Morning Post](https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3368520/northern-metropolis-data-hub-start-phased-operations-mid-2027-clp-power), [Euronews](https://www.euronews.com/video/2026/09/23/humanoid-robots-join-dancers-at-worldskills-opening-in-shanghai)

A news outlet run under China's Ministry of Industry and Information Technology published a commentary rejecting the idea that Chinese carmakers are abandoning Contemporary Amperex Technology Company Limited (CATL), the country's dominant battery supplier. The [South China Morning Post reported](https://www.scmp.com/economy/china-economy/article/3368526/chinese-carmakers-diversify-beyond-catl-batteries-beijing-warns-market-overreaction) that the commentary called market discussion of "de-CATLisation" an overreaction, after CATL's shares declined as a growing number of its automotive partners added second and third battery suppliers.

Both things are true at once. Chinese carmakers are diversifying to reduce dependence on a single supplier and to improve their bargaining position on cell prices, and CATL retains a scale advantage that no domestic rival matches. The state's intervention in the debate is the notable part, because it shows Beijing treating the valuation of a national champion as a matter of industrial policy rather than of market opinion.

The broader buildout continues on schedule or ahead of it. CLP Power said the supercomputing and data hub planned for Hong Kong's Northern Metropolis development near the mainland border [will begin phased operations in mid-2027, earlier than expected](https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3368520/northern-metropolis-data-hub-start-phased-operations-mid-2027-clp-power), and said it has sufficient generating capacity to supply it. In Shanghai, the WorldSkills competition opened with [humanoid robots performing alongside dancers](https://www.euronews.com/video/2026/09/23/humanoid-robots-join-dancers-at-worldskills-opening-in-shanghai), with 1,385 competitors from 68 countries entered in 64 events.

Batteries, computing capacity and industrial automation are the three inputs China has prioritised since American export controls tightened. Progress in all three reduces the leverage those controls carry into this week's summit in Washington.

## What this means

Supplier diversification inside China compresses margins for CATL while lowering input costs for carmakers, which is an ordinary competitive outcome that Beijing is treating as a policy problem. For foreign investors the signal matters more than the shares: a ministry-linked outlet intervening in price formation indicates that state judgement, not earnings, can set the terms of debate on strategic companies. Meanwhile the Hong Kong computing hub and the automation push reduce China's exposure to American export controls over time, which weakens the leverage Washington brings to trade negotiations.

## What to watch

- Whether CATL's automotive customers disclose specific volume shifts to rival suppliers, which would show the diversification is contractual rather than exploratory.
- Further official commentary on the share prices of strategic Chinese companies, because repeated intervention would change how foreign funds price policy risk in those names.
- The power supply commitments behind the Northern Metropolis hub, since electricity availability is the binding constraint on computing capacity in most markets.