German car industry benefits from cooperation with China

Direct investments from China to the EU have totaled about 120 billion euros (144.29 billion U.S. dollars) while the EU has invested 140 billion euros over the last 20 years. Although this was a "large amount," there is still potential for growth, according to the German government.

The fact that China agreed to remove and phase out joint-venture requirements in the automotive sector and committed to market access for alternatively powered vehicles in the scope of the recent investment agreement will be of particular interest to German car manufacturers.

German carmakers are heavily invested in joint ventures with Chinese companies, such as Daimler with BAIC, BMW with BBA and Volkswagen with SAIC, only to name a few. In addition, China is one of the largest markets for new energy vehicles and thus instrumental for the success of Germany's car industry.