Europe, once the teacher in automotive technology for China, is now seeking expertise from Chinese companies, particularly in electric vehicles (EVs), software, batteries, and autonomous systems.
Chinese EV manufacturers have rapidly advanced, surpassing European counterparts in key technologies, forcing a shift in strategy.
European automakers like Volkswagen, Mercedes-Benz, Stellantis, and BMW are forming partnerships and joint ventures with Chinese tech groups to access crucial technology and remain competitive.
The EU is developing policies that may require Chinese companies entering the European market to form joint ventures or license technology, mirroring China's past strategies.
This shift occurs amidst global trade tensions, EU tariffs on Chinese EVs, stagnating European car demand, and China's own industrial overcapacity.
There's internal debate and criticism within Europe regarding the timing and effectiveness of this new strategy, with some arguing it's too late or hampered by protectionism.
Geopolitical tensions, particularly the US-China trade conflict, add complexity, potentially forcing companies to choose between US market access and Chinese R&D.
