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Another automaker envisioning autonomous hybrids is Ford Motor, which said last week it had set up a new unit to accelerate the development of electric vehicles.

Another major driver behind China's pole position is its advantages in battery cell production, according to German consulting firm Roland Berger, which conducted the study in partnership with German automotive research institute Forschungsgesellschaft Kraftfahrwesen Aachen.

Another key factor going forward for China's tech sector is the "Shenzhen effect" - manufacturing clusters with deep networks, experience, expertise and easy supplier availability not available anywhere else will allow Chinese companies to integrate hardware in software. "5G is another step function. There is going to be stuff that we can't even imagine that is going to be built in Shenzhen because of the proximity of all those people together," Robinson said.

Another challenge was paying their 100 employees, because their cash flow had been blocked by coronavirus-related supply disruptions.

Any deal struck between the two companies would face intense regulatory scrutiny.