China's Xi tells CATL he has mixed feelings about its battery market dominance (updated)

CALB

07/03/2023 07:45

(Recasts and adds Xi quote, share reaction)
       SHANGHAI, March 7 (Reuters) - Chinese President Xi
Jinping told CATL  300750.SZ  on Monday he had mixed feelings
about its status as the world's largest battery maker - remarks
that come at a time when the company is rapidly expanding abroad
and moving to undercut domestic rivals.
    After a presentation by CATL Chairman Zeng Yuqun who
described how the firm commands 37% of the global battery
market, Xi was quoted as saying that he was "both happy and
worried", glad about its leading position but concerned about
the risks.
    Xi was speaking in a closed-door meeting with industry and
commerce representatives on the sidelines of the annual session
of parliament, according to a statement published by the
official Xinhua news agency on Tuesday.
    CATL has been building factories overseas and last month
agreed to license its technology to a new plant Ford Motor Co
 F.N  is building in Michigan. 
    It has also offered to cut costs for Chinese automakers,
sources have said, seeking to knock back challenges from smaller
domestic rivals such as CALB  3931.HK  and EVE Energy
 300014.SZ  which have factories ramping up this year.
    "Emerging industries must do a good job in planning,
figuring out how big the market is and where the risks are. They
should avoid marching ahead alone in an invincible fashion, only
to be caught out by others and fail in the end," Xi was quoted
as saying.
    Xi added that firms need to balance development and
security.
    Beijing has in recent years tightened its grip over the
country's biggest companies, regulating how they do business in
and outside China on areas from fundraising to data security.
    CATL did not immediately respond to a request for comment.
Xinhua did not say whether Zeng had responded to Xi.     
    CATL's shares fell 1.6% on Tuesday, in line with a decline
in China's blue chip CSI300 Index.

 (Reporting by Zhang Yan and Brenda Goh; Editing by Edwina
Gibbs)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))