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German car industry benefits from cooperation with China

Xinhua | Updated: 2021-02-12 09:15
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A BMW i8 car attracts visitors at the Automobile exhibition area during the third China International Import Expo (CIIE) in Shanghai, Nov 6, 2020. [Photo/Xinhua]

The fact that German car manufacturers increasingly rely on the Chinese market to boost their car sales does not come as a surprise. Over the last years, the growth in car sales of German carmakers in China has been continuously surpassing that of other markets.

Last year, China accounted for 38 percent of global car sales of Germany's largest car manufacturers Volkswagen, BMW and Daimler, according to a study conducted by the German Center for Automotive Research (CAR).

Following the example of the Regional Comprehensive Economic Partnership (RCEP), which was signed in late 2020 and created the world's largest free trade area, a trade deal between China and Germany in the automotive sector could be a "win-win game" for both parties, German automotive expert Ferdinand Dudenhoeffer told Xinhua.

It would be ideal to reconcile such a trade deal with the politics of the European Union (EU), said Dudenhoeffer, as it could be "tremendously important" for the future of Germany's manufacturing sector.

The deal would not only involve economic aspects but also political and social ones, such as a "CO2-free future" through shared resources and technologies, according to the expert.

An economic and research-oriented partnership between the two countries, in particular in Germany's automotive flagship industry, could therefore be "highly influential for the future," added Dudenhoeffer.

In addition, such partnership could complement agreements already made, such as the investment agreement between the EU and China that concluded negotiations at the end of 2020.

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