Cooperation between Chinese and German automotive companies has become increasingly significant in recent years. These partnerships span various areas such as vehicle production, battery technology, infrastructure development, and research and development. They not only reflect the globalization of the automotive industry but also the strategic efforts of both countries to strengthen their position in global competition.
A very early joint venture was established between BMW and Brilliance China Automotive Holdings. As early as 2003, they jointly founded the BMW Brilliance Automotive Ltd. joint venture in Shenyang. This joint venture produced BMW vehicles for the Chinese market and contributed to BMW’s strong position in China. The partnership was further deepened when BMW increased its stake in the joint venture to 75% in 2022.
Another milestone in German-Chinese cooperation is Volkswagen Anhui, a joint venture with the Chinese manufacturer JAC. Volkswagen holds a majority stake of 75%. The company focuses on the development and production of electric vehicles. Anhui is considered a testing ground for VW’s electric strategy in China. In the future, the site is expected to play a central role in Volkswagen’s e-mobility network in Asia.
In 2023, a surprising cooperation made headlines. Volkswagen invested in the Chinese electric car manufacturer Xpeng to jointly develop new vehicle models. The goal is to gain access to Xpeng’s innovative technologies and software solutions, especially in the areas of autonomous driving and intelligent vehicle architecture. Through this partnership, Volkswagen aims to accelerate the development of two new electric models specifically for the Chinese market. Deliveries are planned to begin in 2026.
Chinese industry is also actively investing in German sites to be closer to customers and shorten supply chains. The Chinese battery manufacturer CATL, for example, operates its first plant outside China in Thuringia. Since the end of 2022, CATL has been producing battery cells there for European automotive manufacturers. The plant is one of the largest battery factories in Europe.
Gotion High-Tech, another Chinese battery manufacturer, is a strategic partner of Volkswagen. In 2020, the German group acquired a majority stake in Gotion. Through this investment, Volkswagen aims to secure control over key battery technologies and become less dependent on third-party suppliers. The cooperation includes both research and development as well as joint production facilities.
The German manufacturers Mercedes-Benz and BMW have joined forces in China to build a shared network of fast-charging stations. The cooperation responds to the lack of charging infrastructure, which poses an obstacle to electromobility in China. Several thousand charging points are planned in the most important metropolitan areas, focusing on user-friendliness, charging performance, and integration into the brands’ existing ecosystems.
The Chinese electric car manufacturer NIO has been active in the German market since 2022. In addition to selling and leasing its vehicles, NIO is also building its own charging infrastructure, including battery swap stations. This concept differs from the usual cable-based charging and aims to shorten charging times.
The Chinese automotive group Chery Automobile has opened its European headquarters in Hesse. The goal is to launch vehicles under the Omoda and Jaecoo brands in the German market. In addition to sales and marketing, Chery also plans medium-term manufacturing and research activities in Europe. This step exemplifies the increasing internationalization of Chinese manufacturers who are actively expanding in Europe.
Cooperation between Chinese and German automotive companies offers a variety of opportunities but also presents challenges.
One of the greatest opportunities lies in technological exchange. Both sides benefit from shared know-how, for example in the fields of electromobility, battery technology, or autonomous driving. Chinese companies often contribute innovation and speed in implementing new technologies, while German manufacturers rely on their engineering expertise and many years of experience in vehicle development. This collaboration creates synergies that can not only reduce development costs but also accelerate the market launch of new products.
Another advantage lies in mutual market access. Through partnerships with Chinese companies, German car manufacturers gain direct access to the world's largest automotive market. Conversely, Chinese companies benefit from the reputation, technology, and sales structures of German corporations, particularly in the European market. In addition, joint platforms and production sites enable economies of scale, which can be crucial in an increasingly competitive global environment.
At the same time, such cooperation is not without risks. Trade conflicts or political interference could endanger existing projects or make future ventures more difficult. There is also the risk of one-sided dependency. If companies rely too heavily on each other, they could lose technological sovereignty in the long term.
Regulatory differences between the two markets also pose a challenge. Different standards, approval requirements, or data protection regulations make the seamless integration of products and processes more difficult. To make these partnerships successful, not only economic expertise is required but also a high degree of strategic foresight. Only in this way can opportunities be optimally utilized and risks sustainably minimized.
The growing cooperation between German and Chinese automotive companies is viewed with mixed feelings in Germany. While industry representatives see important economic opportunities in the partnerships, parts of the public and political spheres are also critical. Debates focus especially on potential dependencies on China, questions of technological sovereignty, as well as data protection and security policy concerns—for example, in the context of joint developments in the field of autonomous driving. Social media shows a broad spectrum of opinions, ranging from skepticism to optimistic openness. One Reddit user, for instance, writes, “Competition stimulates the market—more motivation for VW to improve in the low-end segment.” Another user writes, “Competition stimulates business and is good for the end consumer—possibly making EVs more affordable for the general public.” However, there are also voices critical of cooperating with China. One user writes, for example, “The Chinese electric car manufacturers are overtaking all Western manufacturers left and right. The issue is that Western manufacturers can hardly compete with EVs in China and are losing huge market shares.”
Despite all the challenges, the existing cooperation between Chinese and German automotive companies shows that mutual trust and strategic partnerships can be key to shaping the future of mobility. In an industry undergoing transformation toward electric, connected, and autonomous vehicles, such international alliances open up new perspectives for innovation, sustainability, and economic growth. If both sides continue to collaborate as equals, jointly develop standards, and learn from one another, they can not only benefit from each other but also jointly set global impulses. Thus, the future of the automotive industry should not be shaped by national solo efforts, but by cooperation.