Chinese SUV Test Raises Concerns for US Automakers

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A detailed evaluation by Edmunds of a Chinese SUV has highlighted growing competitive pressure on U.S. carmakers, particularly in technology and pricing.

The vehicle tested, the Geely Galaxy M9 from Geely, is an extended-range hybrid SUV priced at around $25,000 in China. Despite regulatory barriers preventing its sale in the United States, Edmunds conducted a full performance assessment, including real-world driving and a 227-point evaluation.

According to Edmunds’ Editor-in-Chief Alistair Weaver, the M9’s features and technology are “ahead” of many vehicles currently available in the U.S. market. The model includes a large 30-inch infotainment display, advanced in-car entertainment features and premium additions such as a built-in refrigerator and exterior speakers.

Performance metrics also stood out. The M9 offers an estimated range of over 800 miles, combining electric driving with a gasoline-powered generator. It can travel approximately 100 miles purely on electric power, exceeding expectations for similar upcoming models in Western markets.

Edmunds concluded that the vehicle competes with significantly more expensive models such as the Hyundai Palisade, Kia Telluride and Toyota Grand Highlander—despite costing roughly half as much in its home market.

While Chinese vehicles remain largely excluded from the U.S. due to tariffs and regulatory barriers, consumer interest is rising. Surveys indicate growing openness to Chinese brands, with some buyers even exploring indirect import routes via neighboring countries.

The findings underscore a broader industry shift. Chinese automakers, operating in a highly competitive domestic market, are delivering feature-rich vehicles at aggressive price points. This dynamic is pushing global competitors, including Ford and Stellantis, to accelerate development of hybrid and next-generation vehicle technologies.

Analysts warn that if access to such vehicles remains restricted, U.S. consumers could face higher prices and slower innovation compared to global markets.

Indian IT Firms Brace for Weak Quarter Despite Currency Boost

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India’s leading IT services companies, including Tata Consultancy Services, Infosys and HCLTech, are expected to report subdued fourth-quarter results, with growth driven more by currency effects than underlying demand.

Brokerage estimates suggest revenue and profit will rise roughly 10% year-on-year. However, much of that increase is attributed to the depreciation of the Indian rupee, which boosts earnings when dollar-denominated revenues are converted into local currency.

On a constant currency basis—excluding exchange rate effects—growth remains weak, with top firms expected to post only modest gains. Analysts highlight ongoing macroeconomic uncertainty, geopolitical tensions and cautious client spending as key factors limiting expansion.

Discretionary IT spending continues to lag, particularly in sectors such as retail, healthcare and technology, while banking and financial services remain relatively stable. Longer deal cycles and a shift toward cost optimisation projects are also constraining revenue momentum.

The sector is also facing structural concerns related to artificial intelligence. New capabilities from firms like Anthropic and Palantir are raising questions about whether traditional IT outsourcing models could be disrupted.

Forecasts for the next fiscal year remain conservative. Infosys is expected to guide for 2%–4% growth, while HCLTech may project 4%–6%, reflecting continued caution among enterprise clients.

The broader $315 billion Indian IT sector, employing nearly 6 million people, has struggled to regain the double-digit growth rates last seen in 2023. Stock performance reflects these concerns, with IT shares significantly underperforming the wider market this year.

Analysts note that valuations now imply low growth expectations, meaning even modest improvements in outlook could support share prices. However, a sustained re-rating will depend on whether companies can demonstrate resilience and adaptation in an AI-driven environment.

Chinese Factory Adapts to Tariffs, Keeps Core in China

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A Chinese electronics manufacturer has demonstrated how firms are adapting to geopolitical shocks, showing resilience despite tariffs introduced during the Donald Trump administration.

Agilian Technology, a mid-sized exporter based in Dongguan, faced severe disruption in 2025 when U.S. tariffs caused clients—many of whom account for over half its revenue—to freeze orders and push for production relocation outside China. At the peak of tensions, tariffs between the U.S. and China exceeded 100%, effectively halting trade flows.

Despite this, the company ultimately reaffirmed China as its core manufacturing base. Executives cited the country’s unmatched supply chain integration, production speed and component availability as factors that are difficult to replicate elsewhere.

Attempts to diversify production revealed structural challenges. Expansion efforts in India were slowed by regulatory delays and operational inefficiencies, while Malaysia offered a more viable alternative but still lagged behind China in execution speed. Even relocating to the U.S. proved impractical due to higher labor costs and reliance on Chinese-made components.

Meanwhile, China’s countermeasures—including export controls on critical minerals—highlighted Western dependence on its industrial ecosystem. Combined with partial tariff rollbacks following negotiations between Washington and Beijing, these factors helped revive manufacturing activity.

By the second half of 2025, Agilian reported a 29% increase in production hours, marking its busiest period on record. Orders resumed as clients adjusted to a “new normal” of elevated but manageable tariffs.

The case reflects a broader trend: rather than fully exiting China, companies are adopting a “China-plus-one” strategy—maintaining core operations domestically while building secondary capacity abroad as a hedge against future disruptions.

Economists note that tariffs have reshaped global supply chains but have not fundamentally weakened China’s manufacturing dominance. Instead, they have accelerated diversification while reinforcing the country’s central role in global production networks.