China Economic Review
Charting China’s changing economic terrain · Since 1990

Tesla’s China sales rise 91% year-on-year in February

March 12, 2026

Tesla’s China-made EV sales rose ​for a fourth month in a row in February, reports Reuters. This comes ‌as a low comparison base from last year outweighed headwinds from seasonal factors.

Sales of Model 3 and Model Y vehicles made ​in its Shanghai plant, including exports to markets including ​Europe, totalled 58,600 units last month, up 91% ⁠from a year earlier and following a 9.3% rise ​in January, Tesla China said on Wednesday.

Exports from Tesla’s Shanghai factory soared roughly five-fold year-on-year to 20,000 vehicles last month, separate data from the China Association of ​Automobile Manufacturers showed.

The US automaker’s China-made EV deliveries in ​February 2025 were affected by a partial assembly line suspension for its ‌refreshed ⁠Model Y over the Lunar New Year.

BMW recalls 147,830 vehicles in China over fire risk

March 12, 2026

BMW will recall 147,830 vehicles in China ​over a manufacturing issue with ‌the starter motor, which could result in difficulty starting the ​vehicle or in extreme cases ​“pose a fire risk,” reports Reuters, citing China’s ⁠market regulator.

The recall will cover ​some imported BMW 2 Series, 4 Series, 5 Series, 6 Series, ​7 Series, X4, X5, ​X6, and Z4 vehicles manufactured between ‌July ⁠31, 2020 and December 22, 2022, according to a statement released by China’s State ​Administration ​for ⁠Market Regulation.

In February, the German automaker said a ​mid-six-figure number of cars ​would ⁠be affected by a global recall after a potential ⁠starter ​motor defect was ​discovered.

Chengdu Airlines sees capital injection from domestic plane manufacturer

February 24, 2026

State-owned Commercial Aircraft Corporation of China (Comac), manufacturer of the C909 regional airliner and flagship narrowbody C919, recently infused RMB 634 million ($91.76 million) into C909 launch customer Chengdu Airlines, reports the South China Morning Post. Comac has a 48% controlling stake of the airline.

Combined with funding from other sources, the injection has nearly tripled Chengdu Airlines’ registered capital from RMB 680 million to RMB 2 billion, a move analysts viewed as laying the groundwork for more C909s to reach locales in Southeast Asia, Central Asia and Russia on commercial flights.

Chengdu Airlines put out notices in recent months recruiting partners for new international routes using the C909, including service to Vladivostok and Khabarovsk in Russia and Osh in Kyrgyzstan.

Chinese carmaker Chery to start production in Spain

February 9, 2026

Chinese carmaker Chery will start production of its own vehicles in Spain “as soon as possible” this year, reports Reuters citing a company executive. This comes after successive delays to opening what will be its first factory in Europe.

The confirmation that production will slide later into 2026 follows an earlier delay to the fourth quarter of 2025 with commercial reasons cited, including European Union tariffs on Chinese-made electric vehicles (EVs).

Originally Chery had planned to start production of its vehicles in Barcelona in 2024. Chinese carmakers have gained market share in Spain amid an aggressive price war by EV makers worldwide.

Taking off

February 4, 2026

China’s civil aviation authority has proposed a regulatory change to allow the domestically produced passenger jet, the C919, to use runways as narrow as 30m found in smaller airports. 45m is the global standard, but Boeing and Airbus do also use 30m ones for their 737s and A320s in some circumstances. The announcement by the civil aviation administration is subject to a 10-day public comment period before being finalized, and says it takes into consideration market demand amid hopes to make the C919 more competitive both within China and in Southeast Asia, where some smaller airports use narrower runways. 

The rollout of the C919 has been much slower than anticipated and sales in 2025 fell far short of expectations—only 15 aircraft sold compared to the 75 projected. But China is eyeing a place next to the giant Boeing and Airbus as a world-class passenger plane manufacturer. A recent exclusive by the South China Morning Postclaims that COMAC’s newest plane design, the C929, may rollout earlier than the originally expected 2035. The C929 is China’s answer to the Boeing 787 and Airbus A350 and is touted to include a domestically manufactured engine, the CJ-2000. 

There is no other country that is able to realistically compete with the dominance Airbus and Boeing have in the commercial airline market besides China. The Chinese system has the capacity and will—and has made self-reliance an absolute priority. The C919 and C909 have both already fallen short of expectations in terms of timeline and sales and it is not yet clear what sort of uptake either the C909 or its upcoming sibling will get abroad.