China-based FAW Group, one of the country’s largest automakers, has become a strategic shareholder in electric vehicle maker Leapmotor after investing ￥3.74 billion (US$533 million), strengthening the startup’s financial position and supporting its global expansion plans. The deal involved the purchase of 74.8 million shares at ￥50.03 ($7.12) per share, giving FAW a 5% stake in Leapmotor. FAW Equity has formally joined Leapmotor’s shareholder structure, alongside Stellantis, which remains the company’s largest strategic investor.
Beyond the financial injection, the agreement includes a broad technology cooperation agenda between FAW Qixin Power and Leapmotor focused on next-generation electrified vehicles. The partnership will target the joint development of plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs).
Under the terms of the deal, 50% of FAW’s investment will be allocated to R&D, while 25% will be used to strengthen working capital and the remaining 25% will support the expansion of Leapmotor’s sales and aftersales network.
The alliance builds on Stellantis’ strategic investment in late 2023, when the multinational automaker committed €1.5 billion to acquire a 20% stake in Leapmotor, marking a turning point in the Chinese startup’s growth trajectory.
Financial results are already reflecting the impact of these partnerships. In 2025, Leapmotor became the second Chinese electric vehicle startup to report net profits, trailing only Li Auto. Annual vehicle sales approached 600,000 units, and the company has set a new target of reaching 1 million vehicles sold globally.
As part of their joint roadmap, FAW and Leapmotor plan to unveil their first jointly developed and manufactured vehicle in 2027, a milestone aimed at accelerating competitiveness in the global electrified vehicle market.
Beijing Charts Expansion Across Latin America
This month, Beijing unveiled a new official roadmap for Latin America and the Caribbean, the third since 2008 and a replacement for the 2016 plan. Chinese authorities have identified sectors for potential collaboration, including artificial intelligence, telecommunications, renewable energy, hydrogen, mining, and mineral processing. The plan also prioritizes transportation, logistics, housing, electricity, and urban infrastructure projects under China’s Belt and Road Initiative, which now includes 20 Latin American countries.
This strategic focus comes as Latin America emerges as a crucial alternative market for China’s foreign trade amid its ongoing tariff conflict with the United States. By November 2025, while exports to the United States fell 18%, shipments to Latin American countries increased nearly 8% to approximately US$276 billion.
Over the past two decades, Chinese exports to the region have grown almost elevenfold, driven mainly by manufactured goods and, more recently, electric vehicles in markets such as Brazil. Imports from Latin America to China have increased fourteen times, dominated by iron, copper, soy, and oil.
