In Hefei, east China's Anhui Province, an intelligent electric vehicle carrying German President Frank-Walter Steinmeier and his wife takes to a test track. On October 27, just hours after arriving in the city, Steinmeier visited Volkswagen's research and development (R&D) center. It's the German automaker's largest research and development facility outside Germany.

Steinmeier experienced the vehicle's driver-assistance and automated parking features firsthand. Both technologies were independently developed by Volkswagen's joint venture in China, drawing on the country's innovation capabilities in the thriving smart-auto market.

The visit was more than a showcase of new technology. It reflected a fundamental shift in the China-Germany industrial relationship.

For decades, German manufacturers looked to China primarily for its vast consumer market and comprehensive manufacturing ecosystem. Today, as China makes rapid advances in electric vehicles, artificial intelligence and digital technologies, it has increasingly become a place to develop new technologies and forge innovation partnerships.

"Cooperation is no longer simply about completing engineering development in Germany and then moving to China for industrial-scale production," said Thomas Ulbrich, chief technology officer at Volkswagen Group China and CEO of Volkswagen (China) Technology Co., Ltd. He said collaboration between German manufacturers in China and their Chinese technology partners was more important than ever in advancing high-quality R&D.

This evolution was also reflected in the political discussions in Beijing.

During his meeting with Steinmeier on Friday, Chinese President Xi Jinping said China and Germany had complementary strengths and aligned development strategies, offering broad prospects for cooperation. He called for closer collaboration in artificial intelligence, green and low-carbon development, trade in services and the digital economy – sectors that will shape their future competitiveness.

From industrial facilities in Hefei to high-level talks at the Great Hall of the People in Beijing, Steinmeier's visit has offered a glimpse of a changing China-Germany relationship: building on traditional trade and economic ties, the two sides are seeking deeper innovation-driven cooperation.

A driving force for China-EU relations

The transformation of China-Germany industrial cooperation matters not only to businesses in the two countries, but also carries broader significance for Europe. Germany is the EU's largest economy and one of its most important industrial powers. Its economic ties with China have long been a major pillar of China-EU trade and investment.

For China-EU relations, disagreements over electric vehicles, trade imbalances, market access and industrial policies have put economic ties under pressure. Despite that, Xi reiterated that China always regards the EU as a partner and approaches relations with sincerity and goodwill. He noted that China-EU economic and trade ties are built on complementary strengths and mutual benefit. 

Xi said that as long as both sides remain committed to their partnership and engage in dialogue on an equal footing, differences can be resolved without holding back the development of China-EU relations. 

Steinmeier echoed the sentiment, saying Germany and China can address trade differences through dialogue, achieve mutually beneficial outcomes and set an example for the world.

A shared interest in an open global economy

The significance of China-Germany cooperation extends beyond bilateral economic ties to global governance.

As unilateralism and protectionism put pressure on global trade and supply chains, the two economies have a shared interest in maintaining an open and predictable international trading system.

During the talks, Steinmeier said the international order was under pressure and that the world expected China to play a greater role. He said Germany was ready to work with China to safeguard world peace and development, uphold the UN Charter and international law, support free trade and World Trade Organization rules, and oppose protectionism and trade wars.

Xi called on the two countries to strengthen communication and coordination and establish a new model of cooperation based on equality, mutual benefit and strategic stability. Their message to the world, he said, should be one of openness rather than isolation and cooperation rather than confrontation.

Jin Ling, director of the Institute of Global Governance and International Organizations at the China Institute of International Studies, said Steinmeier's remarks reflect Germany's recognition of China's international standing and growing influence. She noted that closer cooperation with China could help send a message of stability and certainty to an increasingly turbulent world.

At a time of mounting global uncertainty, a stable and mutually beneficial China-Germany partnership can benefit not only the two countries, but also inject fresh momentum into China-EU relations and global economic growth.