Chinese companies are showing interest in purchasing struggling car factories in Germany, including Volkswagen facilities, Reuters reports, citing its sources.
The main goal of such investments is to establish electric vehicle production in Germany for subsequent sale in the European market. This would allow Chinese manufacturers to avoid paying European Union tariffs on electric vehicle imports from China, potentially increasing pressure on European competitors.
Experts note that such a deal could become one of China’s most “politically sensitive investments” in Germany. Volkswagen has long been a symbol of the country’s industrial strength but is now facing various challenges, including declining global demand and difficulties transitioning to green technologies.
China has already been actively investing in the German economy, including in telecommunications and robotics. However, until now, it has not ventured into traditional car manufacturing in Germany, despite significant stakes held by Chinese shareholders in Mercedes-Benz.
If the acquisition takes place, it could mark a turning point in the relationship between the world’s two largest economies, inevitably drawing attention from both businesses and policymakers.
