China-Germany cooperation reshaping EV industry

Chinese–German cooperation in the electric vehicle (EV) industry is moving beyond traditional joint ventures toward deep technology partnerships that are reshaping the global automotive industry.

Germany's largest carmaker Volkswagen has entered a strategic collaboration with Chinese EV manufacturer XPeng. The partnership combines XPeng's locally developed EV technology with Volkswagen's engineering expertise and brand strength to develop China-made vehicles tailored specifically for the Chinese market.

Similarly, Audi has partnered with China's state-owned SAIC to create a China-specific electric vehicle platform and develop next-generation connected technologies.

Chinese engineering strength in battery development, from faster charging and longer driving ranges to intelligent and autonomous driving and digital vehicle platforms, have been key areas of cooperation. It comes as European automakers transition from traditional combustion engines to more advanced electric vehicles production, says Beatrix Keim, the director of the Center for Automotive Research (CAR).

"The Chinese automotive industry has been on a higher scale and a bit earlier in battery electric development", she tells CGTN. "So (the objective is) to take this technology advantage and bring it into the European manufacturers."

At the same time, Chinese companies are expanding their research and development presence in Germany to tap into the country's long-standing automotive expertise and credibility.

Chinese EV makers Xiaomi and Li Auto have established new R&D and design centers in Munich, focusing on powertrains, smart chassis systems and adapting products for European markets.

Keim refers to this as "reverse engineering." She explained: "Before, the established European manufacturers brought their knowledge of the combustion engine to China. Now Chinese R&D centres are supporting European automakers to redefine battery electric powertrains."

For newer Chinese brands, partnerships with established European manufacturers also enhance credibility in unfamiliar markets.

According to Keim, "(these partnerships) are helping the Chinese brands to come into the European market because if the people know there is a cooperation going on, they have less caveat towards the Chinese brands."

Munich-based Euro EV is working with Chinese brands such as Aiways to adapt electric vehicles more effectively to European consumer expectations. CEO Alex Klose emphasises the importance of local expertise.

"We will do the product definition", he tells CGTN. "(We) help the brands in China understand what are the specific needs in Europe, develop these into a proper product and then have the Chinese brands engineer those on the basis of what they already have. And then (the car is) brought back to Europe."

Such partnerships also provide access to China's highly advanced supply chains. "No one does it better than the Chinese," Klose added.

Sino-German cooperation is also extending to battery gigafactories in both regions, aimed at securing those supply chains and reducing production costs.

Together, these developments mark a shift from market access toward co-innovation in electric and intelligent vehicles. The partnerships are helping to set new global benchmarks for performance, sustainability, and market integration.

While trade tensions, intellectual property concerns, and geopolitical competition add some complexities to how deep these cooperations can go, both sides continue to invest in joint innovation, leveraging the strengths of each market to advance electric mobility worldwide.