An automotive cooperation conference between China and Germany, held for its 8th time, is underway in Munich from October 15 to 17. The event arrives at a critical moment for both countries, offering an important platform for collaboration as trade dynamics between Europe and China grow increasingly complex.

Recent tensions surrounding the European Union's proposed tariffs on Chinese electric vehicles (EVs) makes this conference particularly timely. The event provides an opportunity for stakeholders from both nations to explore ways to navigate these challenges while advancing shared economic interests.

Earlier this month, the European Commission said it had secured sufficient backing to implement the new tariffs. However, the proposal was met with notable opposition from several EU members, including Germany.

Chancellor Olaf Scholz and other key German officials have spoken out against the tariffs, arguing that Europe's competitiveness should be enhanced through open markets rather than protectionism. They cautioned that additional duties on Chinese EVs could harm both German and the broader European economy.

Amid this backdrop, the conference focuses on building stronger ties between China's thriving automotive sector and Germany's established supply chains. Special attention is being given to innovations in EVs, parts manufacturing, and other cutting-edge technologies that can foster mutual growth.

The event's theme focuses on carbon neutrality and the future, reflecting a shared commitment to sustainable transportation solutions. Both countries view this partnership as a way to drive the transformation toward greener mobility, ensuring that their industries remain competitive in the global shift toward cleaner, more efficient transport systems.

Deepening cooperation

The close collaboration between China and Germany in the automotive sector has grown stronger over the years. In April 2024, BMW Group announced a 20-billion-yuan ($2.81 billion) investment in its Shenyang production base, focusing on upgrading facilities and preparing for the production of its new-generation models by 2026. BMW CEO Oliver Zipse has said the expansion reflects the strategic importance of the Chinese market in the company's shift toward smart and connected vehicles.

Meanwhile, other Chinese automakers have gained traction in Germany, with brands like SAIC's Roewe breaking into the top 10 in German EV sales, and automakers such as BYD and Great Wall Motor making the top 25. NIO, another Chinese EV manufacturer, established a presence in Germany in late 2022, opening an innovation center in Berlin and, more recently, a smart driving technology hub near Schonefeld in the Berlin region.

German consumers are showing growing interest in Chinese automotive brands. A survey by ADAC, Germany's largest automobile association, revealed that nearly 60 percent of respondents are open to purchasing cars from Chinese manufacturers. Among those intending to buy EVs, a striking 80 percent expressed willingness to consider Chinese models. This growing acceptance reflects not only the affordability and quality of Chinese EVs but also a recognition of the rapid innovations emerging from the Chinese automotive industry.

Amid the evolving trade dynamics, Hildegard Muller, president of the German Association of the Automotive Industry, has cautioned against the risks of escalating protectionism. She said tariffs on Chinese EVs "would not only further increase the risk of a mutual trade conflict, but would also make vehicles considerably more expensive for consumers." 

Trade conflicts have no winners, Muller warned, highlighting that in an increasingly interconnected world, collaborative efforts are essential to ensure the sustainable development of global industries.