China’s Auto Industry Stagnates Due to Chip Shortage

Employees working on an assembly line at an Dongfeng Honda auto in Wuhan in China's central Hubei Province, on April 15, 2021. STR/AFP via Getty Images

The world is currently experiencing computer chip shortages and China is no exception. China’s lagging semiconductor manufacturing business has become a long-term barrier for its auto industry.

China held its Automotive Industry Summit, the “2021 China Automotive Forum,” in Shanghai from June 17 to 19. The forum focused heavily on how to solve the chip crisis, as the themes were “Automotive Chip Shortage” and “China’s Countermeasures.”