Works by Qiaofu

People, Cars, and the Competitive Arena (Jianghu—a term denoting the automotive industry or a realm of fierce competition)

Bearing Witness to the Ascendancy of China's Auto Industry Hand in Hand

Xu Jiayin may have faced legal repercussions, but his strategic vision for Evergrande Auto was unmistakable. His approach could be succinctly encapsulated by the phrases: 'acquisition spree,' 'collaborative quest,' 'strategic networking,' 'grand ambitions,' and 'excellence pursuit.'

This methodology bears resemblance to Li Shufu's Geely's model of frequent and extensive mergers and acquisitions (M&A).

01 Xu Jiayin's Strategic Triad

At the sole large-scale automotive partner conference convened by Xu Jiayin, he unveiled his car-building strategy, encompassing the aforementioned 'acquisition spree,' 'collaborative quest,' 'strategic networking,' 'grand ambitions,' and 'excellence pursuit.'

Xu Jiayin elucidated his strategic triad:

'Acquisition spree' entails leveraging capital to expedite time and swiftly acquire core technologies. The underlying rationale is to amass all globally leading core technologies and acquirable companies, with the objective of shortening R&D cycles and capturing the market.

'Collaborative quest' signifies seeking partnerships to acquire technologies that cannot be bought outright, achieving utilization through collaborative endeavors.

The remaining components—'strategic networking,' 'grand ambitions,' and 'excellence pursuit'—serve merely as complements to the core strategy.

'Acquisition spree' and 'collaborative quest' form the crux of Xu Jiayin's car-building strategy. Under this guidance, Xu Jiayin first acquired Protean in the UK, a company boasting advanced in-wheel motor technology; subsequently, he secured a 51% stake in Sweden's NEVS, an electric vehicle company, for $930 million, attaining controlling interest; later, he made substantial investments in purchasing the 3.0 chassis architecture developed by FEV and Benteler.

In terms of outcomes, after surmounting the challenge of transitioning from 0 to 1, Xu Jiayin planned nine car models, yet only the Hengchi 5 was launched, becoming a limited edition.

From real estate to automobiles, Xu Jiayin's 'acquisition spree' and 'collaborative quest' models did yield results, progressing much faster than Jia Yueting, who repeatedly promised to return to China 'next week.'

02 Has Li Shufu's Path Been Emulated?

When Xu Jiayin boldly proclaimed 'acquisition spree,' Li Shufu and his Geely group had already traversed a considerable distance down this path.

The 'acquisition spree' approach of the Li Shufu family and Geely group has been marked by high frequency, broad scope, and long duration.

For technologies he coveted, Li Shufu made acquisitions, such as purchasing Volvo; for brands he admired, he made acquisitions, such as buying Lotus Cars; for production capacity he sought, he made acquisitions, such as taking stakes in Renault in Brazil and Ford in Spain.

According to incomplete statistics, under Li Shufu's stewardship, the Geely group has also taken stakes in the London Taxi Company, Proton, Renault Korea Motors, and Aston Martin. Additionally, Li Shufu established SMART and Polestar through joint ventures; became the largest shareholder of Lifan Technology as a restructuring investor; and assumed management of Changfeng Hunter's factory in Changsha as a trustee.

Overall, Geely has engaged in numerous asset acquisitions and equity mergers during its growth trajectory. However, it would be inaccurate to assert that Xu Jiayin copied Li Shufu's model, as Xu Jiayin's approach encompasses not only 'acquisition spree' but also 'collaborative quest,' 'strategic networking,' 'grand ambitions,' and 'excellence pursuit.'

03 Parallels and Divergences Between Xu Jiayin's 'Acquisition Spree' and Li Shufu's M&A Strategy

The most significant disparity between Xu Jiayin's and Li Shufu's automotive development models lies in their outcomes.

Undoubtedly, Xu Jiayin's Evergrande Auto is poised for failure; whereas the assets acquired by Li Shufu through 'acquisition spree' continue to thrive within the Geely group.

The primary reason for this divergence is cash flow.

Had Xu Jiayin been able to secure an additional 50 billion yuan—a substantial 'if'—Evergrande Auto might have truly become a turning point for his resurgence. Xu Jiayin's failure does not necessarily portend Li Shufu's success.

Geely has acquired numerous brands and assets, and whether these will ultimately yield positive returns for Geely necessitates continuous observation.

Volvo has long been regarded as a successful exemplar of Geely's 'snake swallowing an elephant' strategy, but last year, Volvo also emerged as one of the factors dragging down Geely's credit rating.

In 2025, Geely Holding Group's asset impairment losses soared to as high as 14 billion yuan, indicating a squeeze on asset valuations. Among these squeezed assets were some acquired by Li Shufu.

The automotive industry is a marathon. Xu Jiayin has stumbled, but Li Shufu is still on the course, striving toward the finish line.