The Impact of US-China Trade War on Market Capitalization of Chinese Lithium Battery Industry

The main issue of this paper is the impact of the US-China trade war on the market capitalization of Chinese lithium battery industry. Firstly, this paper analyses the impact of the evolution of US-China tariff policy from 2017 to 2025 on the fluctuations in market capitalization of Chinese lithium battery industry. Secondly, this paper examines the impact of three key factors in the industry’s market capitalization: changes in the supply chain of lithium battery raw materials, the market diversification strategy of enterprises and their R&D investment levels. Finally, based on the above analysis, this paper explains the fluctuation of lithium battery companies’ market capitalization in response to tariff policy changes. This paper selects five companies with a large proportion of exports to the United States, including EVE Energy Co., Ltd., Contemporary Amperex Technology Co., Ltd. and Build Your Dreams, as the research subjects. By analysing their market capitalization, Research and Development investment, and export data, and combining these with customs import-export data for trend and descriptive analysis, it reveals the short-term shocks of the trade war on the industry and its long-term resilience and adaptation mechanisms.