According to Nikkei research, Chinese companies have occupied more global market shares in 13 high-tech products and services from electric vehicles to smartphones, highlighting China's huge influence in the global supply chain.

Among the 28 high-tech categories reviewed by the Nikkei Index, China expanded its share by 13 in 2021. Chinese enterprises lost market share in six categories and did not enter the top five in the remaining nine categories.

The Biden government has recently strengthened export controls on advanced semiconductors, which shows that the United States and China have a high degree of tension in technology that is considered critical to national and economic security.

In the electric vehicle supply chain, China's battery leader Ningde Times is the world's largest battery supplier, accounting for 38.6% last year. Since 2020, its position has increased by more than 12 percentage points. After the merger with peer BYD, the total share of the two companies is 46%.

Last year, BYD surpassed Renault, Nissan and Mitsubishi Automobile Alliance to become the fourth largest electric vehicle manufacturer. BYD takes advantage of its in-house battery manufacturing to drive down the price of its electric vehicles.

In the first half of this year, BYD became the second largest electric vehicle manufacturer after Tesla.

In terms of battery materials, Enjie shares 28.7% of the diaphragm. The company uses government subsidies to invest and expand production. Japan's Asahi Kasei ranked second with a share of 10.7%.

These gains show that China's market share in the upstream and downstream electric vehicles is increasing with the market take-off.

In the LCD display field where Japanese and Korean enterprises once competed fiercely, BOE Technology Group of China ranked first in the market share of large TV panels and small and medium-sized mobile tablet panels.

Huawei maintained a leading position in the field of wireless network base stations, but its share fell from 38% to 34% under the pressure of US sanctions.

In general, the research of Nikkei Index covers 56 product and service categories, focusing on the top five companies with market shares in each category last year. Chinese enterprises entered the top five in 32 categories, their market share increased in 21 categories and decreased in 11 categories.

Masahisa Inagaki, partner of KPMG FAS, said that in the face of escalating Sino US tensions, "global companies are taking measures to divide the supply chain into 'China related' and 'non China related'."

This includes Japan's Daikin Industry, which is building an air-conditioning supply chain that does not use Chinese made parts and materials.

But "Japanese companies tend to view these actions as an extension of their existing business continuity plans," Inagaki said. "In order to minimize the impact of the crisis, they need to rethink the supply chain in normal times."