🇨🇳🇩🇪 China is reportedly exploring the acquisition of struggling German car manufacturers, including Volkswagen, according to Reuters, citing an anonymous source.
Establishing car production in Germany for the European market would enable Chinese electric vehicle (EV) makers to avoid EU tariffs on imports from China, further intensifying competition for European automakers.
Such a move could represent “China’s most politically sensitive investment to date,” given Volkswagen’s status as a longstanding “symbol of Germany’s industrial power.”
However, the automaker is now facing significant challenges, including a global economic slowdown, waning demand, and the complex shift to green technologies.
While Chinese companies have already made significant investments in key sectors of Germany’s economy, such as telecommunications and robotics, they have yet to establish traditional car manufacturing in the country. This is despite Chinese firms holding major stakes in Mercedes-Benz.
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Establishing car production in Germany for the European market would enable Chinese electric vehicle (EV) makers to avoid EU tariffs on imports from China, further intensifying competition for European automakers.
Such a move could represent “China’s most politically sensitive investment to date,” given Volkswagen’s status as a longstanding “symbol of Germany’s industrial power.”
However, the automaker is now facing significant challenges, including a global economic slowdown, waning demand, and the complex shift to green technologies.
While Chinese companies have already made significant investments in key sectors of Germany’s economy, such as telecommunications and robotics, they have yet to establish traditional car manufacturing in the country. This is despite Chinese firms holding major stakes in Mercedes-Benz.