F1 Shanghai Grand Prix Set to Fire Up: New Regulations Controversy, Chinese Elements, and a Celebration for 230,000 Fans

Reporter | Dong Tianyi, Huang Xinxu, Sun Tongtong

Editor | He Xiaotao, Pei Jianru, Yi Qijiang, Proofreader | Huang Sheng

On March 13, the Shanghai International Circuit was filled with cheers, camera shutters, and roaring engines. Amid the lively atmosphere, the 2026 F1 Chinese Grand Prix (the Shanghai round) officially kicked off.

“Today is practice, and although the excitement isn’t as high as qualifying and the race, there are many spectators, and the atmosphere is already intense. Everyone is passionate about F1. Many came for stars like Max Verstappen, Lewis Hamilton, and Lando Norris. Tickets are hard to get,” a racing fan at the scene told the Daily Economic News.

Image source: Daily Economic News reporter Huang Xinxu

This is the second race under the new technical regulations era of F1. The addition of Cadillac brings 11 teams and 22 cars to the track. Audi has officially joined as a factory team by integrating Sauber, forming a new competitive lineup alongside traditional giants.

Inside the circuit, the performance of the new power units and active aerodynamics systems still needs to be tested; outside, a piece of news is stirring both inside and outside the paddock—leading new energy vehicle manufacturer BYD is reportedly exploring the possibility of entering F1. Meanwhile, over 230,000 spectators are expected to flood into the venue, setting a record for the event’s nearly 20-year history in China.

“Because of the new regulations this year, the cars are smaller and more agile, which makes them more exciting to watch. So we wanted to see how the Shanghai race would turn out,” a fan told reporters.

F1 Rules Undergo the “Largest Transformation in History”

2026 is widely recognized as the year of the “big rule overhaul” in F1. The FIA has redefined the cars comprehensively: electric power contribution in the power units increases to 50% for the first time; active aerodynamics replace the long-used DRS; the car’s wheelbase shortens by 200mm, width narrows by 100mm, and minimum weight drops to 768kg.

On paper, these rules aim to enhance the spectacle—smaller cars make the track appear wider, theoretically increasing overtaking opportunities; active aerodynamics allow cars to deploy rear wings on straightaways to reduce drag and “stand up” in corners to increase downforce; a new “overtake mode” grants trailing cars extra electrical power output when within one second of the car ahead.

But reality is more complex.

After the Australian Grand Prix opener this year, reigning champion Lando Norris described the new cars as “the worst in history.” In qualifying, Norris was nearly a second behind the leader, and in the race, he witnessed teammate Oscar Piastri lose control and crash into the wall after deploying an extra 100kW of power from the power unit during his out-lap.

“The racing was chaotic, and there’s a risk of serious accidents,” Norris said after the race. “The speed difference between two cars can reach 30, 40, or even 50 km/h. If two cars collide at such speeds, you could be thrown out and go over the barriers.”

The core issue lies in energy management. Due to the significant increase in motor power but limited battery capacity, cars are forced into “full fuel charge” mode on long straights—during which the motor stops working, and the internal combustion engine generates electricity with partial power, causing a sudden drop in speed. This phenomenon, at the end of straights when the battery runs out, is called “super clipping” by technicians.

Even more challenging is that this complex system’s control logic differs entirely from traditional racing cars. Drivers must consider not only braking points and racing lines but also plan their energy distribution each lap. The unique “Z-shaped” layout of the Shanghai circuit, along with a 1.2 km long straight, will put the energy management systems of both the new cars and drivers to a tough test.

“2026 F1 power unit regulation changes are the most significant since 2014. It’s a very complex new challenge for drivers and teams. During races, drivers and teams need to decide how to adjust the power between internal combustion and electric motors in real time,” said Jason Gao, Global Chief Researcher at ExxonMobil Solutions.

FIA may have recognized the uncertainties brought by the new regulations. Reports suggest that F1 might revise the 2026 power unit rules after this Shanghai round, possibly including increasing full fuel charge power (super clipping), reducing peak output of the MGU-K (kinetic energy recovery system), and boosting internal combustion engine output.

Increased Hybrid Weight Offers Opportunities for Chinese Automakers

Notably, the core change in the 2026 F1 power units is the upgrade of the hybrid system. The new rules require hybrid power contribution to rise to 50%, doubling from previous levels, demanding higher energy density, better cooling, and smoother power integration—opening opportunities for Chinese automakers with advanced new energy tech.

On March 13, media reported that BYD executives said the company is exploring entry into competitive racing, including F1 and endurance racing. The Daily Economic News contacted BYD for verification, but had not received a response as of press time.

As one of the world’s largest EV manufacturers, BYD’s pure electric vehicle sales surpassed Tesla in 2025, with over 2.25 million units delivered annually; overseas sales exceeded 1 million for the first time, up 150%. However, in mature markets like Europe and Australia, BYD’s brand recognition and product strength still lag behind.

F1 offers a potential solution.

In fact, F1 may be one of the best “golden opportunities” for global automotive brands. Since Aston Martin’s return to F1, its brand searches among 25-35-year-olds have surged, with over 60% of high-performance car orders coming from new customers who first encountered the brand through F1.

However, “golden opportunities” come at a cost. It’s estimated that building and operating an F1 team from scratch costs about $500 million per season, excluding entry fees—such as the “anti-dilution fee” paid by General Motors for Cadillac’s entry as the 11th team in 2026, which alone is $450 million.

Top-performing F1 teams can also earn substantial profits. According to the current Concorde Agreement, F1 team revenues mainly come from three sources: race prize money, commercial sponsorship, and team-owned income. Race prize money is directly linked to performance. In 2024, F1 paid a total of $1.266 billion to 10 teams, accounting for about 45% of total F1 revenue. This money isn’t evenly distributed: about 50% of the prize pool is shared equally among all teams, while the rest is allocated based on the previous season’s championship standings, with the champion team receiving the most.

Another major income source is commercial sponsorship. For example, Oracle, the title sponsor of Red Bull Racing, pays over $70 million annually; Mercedes’ Mobil 1 and Ferrari’s HP contribute tens of millions of dollars. Even mid-tier teams like McLaren and Aston Martin earn between $80 million and $150 million annually from sponsorship. Teams also generate revenue through merchandise sales and customer racing programs. Ferrari and Red Bull, with large fan bases, can generate $50 million to $100 million annually from peripheral products. Engine sales to smaller teams also bring in $20 million to $50 million per year.

If BYD enters F1, it will face not only on-track competition but also this complex business landscape. But with annual revenues exceeding $100 billion, BYD has the financial capacity to participate.

Earlier reports suggested BYD might acquire an existing team rather than build one from scratch, with Renault’s Alpine being a potential target. Alpine announced it would withdraw from the World Endurance Championship (WEC) after this season and stop developing its own powertrain from 2026, opting instead to purchase Mercedes power units.

BYD’s biggest advantage in entering F1 is its hybrid electric drive technology. The 2026 F1 power unit rules emphasize hybrid systems, with MGU-K (kinetic energy recovery system) power increasing from 120kW to 350kW, and electric power contribution reaching about 50%. For BYD, which develops its own batteries, motors, and control systems, F1 will be a highly relevant testing ground for core technologies.

“Even F1 is starting to adopt hybrid systems. We believe hybrid is a very promising future solution. The cutting edge of technology, especially in power and vehicle control, can be seen in F1 development,” said Feng Qingfeng, CEO of Lotus Group, in an interview.

FIA President Mohammed bin Sulayem has publicly welcomed Chinese automakers’ entry into F1. “This is the most natural step after Cadillac’s entry,” he said.

Shanghai Crowd of 230,000 Celebrates

If the focus inside the circuit is on the new regulations and capital moves, outside the track, the main theme is excitement.

An interesting detail is that some team members who arrived in Shanghai a week early were spotted shopping at Costco, Sam’s Club, and other international supermarkets, with shopping carts full—becoming a hot topic online, even prompting fans to buy similar products.

According to Shanghai Jiushi Sports, during this F1 Chinese Grand Prix, over 230,000 spectators are expected to attend, setting a nearly 20-year high. Among them, 14% are international visitors, and 74% are from other provinces and cities, each increasing by 3 percentage points compared to last year.

The influx of spectators has directly boosted accommodation spending. Data from a booking platform shows that during the event, hotel reservations within 3 km of the circuit in Jiading District surged by an average of 125%, with some days seeing a 38-fold increase compared to the previous week. High-end hotels like Sheraton Jiading, Hyatt Jiading, and Shanghai Auto City Ruili are fully booked, including all rooms in presidential suites, just before the final.

“Many teams have designated hotels here. Over the past two years, not only have fans become more enthusiastic, but teams and international organizers also pay more attention, leading to more visitors,” said Sun Weijie, General Manager of Shanghai Jiading Sheraton Hotel.

Notably, this year’s F1 has expanded from a single race to a 54-day global event. Districts like Jiading, Xuhui, Hongkou, Baoshan, and Huangpu have introduced “checkered flag” elements, with activities such as go-karting, family events, and themed exhibitions. Hongkou District built a go-kart track at Beiwaitan for the first time, and a dedicated cruise line connects the National Guest Center to Xuhui West Bank; Jiading launched “Watch the Race, Tour Jiading” themed activities, linking Nanshao and Zhujiajiao ancient towns with “classic car in ancient town” events; Huangpu District set up the first Huangpu Racing Festival sub-venue on Nanjing Road Pedestrian Street, with long queues for the tire-changing experience.

Platform estimates show that the 2025 F1 Chinese Grand Prix boosted Shanghai’s tourism consumption by over 5 billion yuan. With the record-breaking spectator numbers and the event’s extended 54-day cycle this year, this figure is expected to be surpassed.

— Daily Economic News, nbdnews, Original Article —

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Daily Economic News

(Editors: Liu Chang)

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