During Scholz's visit to China, German automakers have become more reliant on the Chinese market.
At the beginning of 2026, German Chancellor Merz led the global leaders of Volkswagen, Mercedes - Benz, and BMW, along with more than 30 executives of core German enterprises, on a visit to China. This highly - anticipated diplomatic interaction between China and Europe has long transcended the scope of simple bilateral economic and trade relations.
As the world's second and third - largest economies, in - depth dialogues between China and Germany have an impact on the international political and economic landscape. For the automotive industry, the full participation of the three German automotive giants, the intensive signing of agreements between Chinese and German car companies, and in - depth discussions between government and enterprise leaders have clearly defined this game: although Sino - German cooperation is a win - win situation for both sides, from the perspective of industrial reality and economic data, the German automotive industry and even the German economy have long had a deeper - level dependence on China.
In other words, this visit to China is less about Germany seeking economic and trade "balance" in China and more about a reversal of the situation where Germany and its automotive industry have to bow to the Chinese market and Chinese technology in the wave of electrification and the reconstruction of the global landscape.
During Merz's visit to China, the automotive industry has undoubtedly become the core topic and focus of Sino - German cooperation. From the substantial agreements reached to the core content of the government - enterprise discussions, it marks that the cooperation between the Chinese and German automotive industries has officially entered a new stage of "two - way technology co - creation" from the past model of "trading the market for technology". Behind each cooperation is the urgent need of German car companies for Chinese technology and supply chains.
BMW signed a memorandum of understanding on the cross - border use of industrial data with CATL. Although it seems to focus on data governance, it is actually a crucial step for BMW to stabilize its electrified supply chain.
In the battery field, CATL has a global market share of over 35% and leads the world in core technologies such as solid - state batteries. The mass production of BMW's Shenyang Power Battery Center and the battery supply for its new - generation models are highly dependent on CATL.
This consensus not only solves the core pain points of BMW's local operations but also confirms China's rule - making power in the field of data governance, upgrading Sino - German cooperation from simple "product supply" to in - depth "rule co - construction".
Mercedes - Benz signed an upgraded strategic cooperation memorandum of understanding with Momenta. Merz also visited the Beijing Benz factory in person and test - drove the new - generation Mercedes - Benz S - Class, experiencing China's intelligent driving technology and capabilities. This marks that Sino - German automotive cooperation has advanced to the practical implementation level.
At the Sino - German Economic Advisory Committee symposium on the 25th, more than 60 Chinese and German entrepreneurs had in - depth exchanges on topics such as electrification, green manufacturing, local supply chains, and R & D cooperation. Chinese car companies such as Geely, Xiaomi, and NIO had direct dialogues with German giants. The relevant consensus was finally included in a package of cooperation documents after the talks between the Chinese and German prime ministers, elevating Sino - German automotive cooperation from the enterprise level to the national strategic level.
During the delegation's visit to Hangzhou, in addition to visiting the popular Unitree Technology, they also had exchanges with Hangzhou entrepreneurs from Geely and Leapmotor. This can be seen as Germany's recognition of the strength of Chinese local new - energy vehicle companies, highlighting the hard power of China's new - energy vehicle industry.
Behind these series of actions is a fundamental change in the underlying logic of Sino - German automotive cooperation: in the past, German car companies entered the Chinese market with core technologies, trading technology for the market and dominating the industry. Now, China has formed an unshakable structural advantage in the fields of electrification, intelligence, and batteries. German car companies not only need Chinese technology and a complete supply chain to reduce transformation costs but also need the world's largest automotive market in China to maintain corporate profits and development foundations.
It is true that Sino - German automotive cooperation is two - way. China also needs to cooperate with Germany to further open up the European market and achieve the global output of technology and brands. However, this need is fundamentally different from Germany's deep - level dependence on China.
When Merz shouted "establish a balanced partnership" before his visit to China and the German government tried to create a tough stance of "not relying on China", the actual actions of German enterprises and the cold economic data have long punctured the illusion of this "balance". Germany's one - way dependence on China has long been engraved in the marrow of its industry and economy.
Judging from trade data alone, China has long become Germany's irreplaceable largest trading partner. In 2025, the Sino - German trade volume reached 251.8 billion euros, and China once again surpassed the United States to top the list. Among them, Germany imported 170.6 billion euros from China, while its exports to China were only 81.8 billion euros. Imports were more than twice the exports, and the trade deficit with China was nearly 90 billion euros. This means that the German market's demand for Chinese goods far exceeds China's demand for German goods.
In the automotive field, which accounts for 13% of German industrial employment and 17% of export volume and is known as the "lifeblood of German industry", this trade deficit is even more significant: Chinese electric vehicles, batteries, and intelligent components continue to pour into the German market, while German car companies' sales in China are declining and their exports to China are growing weakly. The tilt of the trade pattern has long determined Germany's passive position in Sino - German economic and trade relations.
Objective data more intuitively confirms this reversal of the industrial pattern. From 2022 to 2025, the market share of German car companies in China decreased by an average of 33%. Among them, BMW's decline was 42%, and Mercedes - Benz's was 35%. The traditional advantages of German brands in China are constantly shrinking.
In contrast, Chinese brands are not only squeezing German cars in the Chinese market but also making rapid progress in the German market. BYD delivered 23,306 electric vehicles in Germany in 2025, a year - on - year increase of 706.2%. In January 2026, sales soared by more than 1000%, and it also plans to deploy more than 350 dealers in Germany before the end of the year, aiming to achieve an annual sales target of 50,000 vehicles. The contrast in the competitiveness of the Sino - German automotive industries is already clear.
The global layout choices of German car companies further confirm their deep - level dependence on the Chinese market. While closing factories and reducing production capacity in Germany, they are investing heavily in local layout in China.
Volkswagen has invested more than 20 billion euros in its Hefei base and taken a stake in XPeng. BMW has invested more than 10 billion euros in building a power battery center in Shenyang. Mercedes - Benz continues to increase its investment in local electrification R & D in China. The actions of the three German giants are highly consistent because they know that "only by succeeding in China can they succeed in other markets". As Oliver Zipse, the chairman of BMW Group, said, ignoring the Chinese market means missing out on major opportunities for global growth and economic success.
There is no doubt that the choices of enterprises are always more real than the statements of the government. Although the German government wants to maintain a certain "political dignity", the increase in Germany's direct investment in China in 2025 reached 7.5 billion euros, a 70% increase year - on - year, hitting a new high in the past five years. German enterprises are voting with real money, demonstrating their firm confidence in the Chinese market.
This gap between the government's desire to be tough and the enterprises' reluctance to do so is the biggest weakness of the Merz government, and it also confirms a fact: the German government's China strategy will eventually yield to the market's choice and the German enterprises' deep - level dependence on the Chinese market and technology.
Looking at China's demand for Germany, it can be seen as "using Germany as a channel" rather than "relying on it", and it is not a passive dependence in industrial development. The continuous tension in Sino - US relations has made Europe an important blue ocean for China's automobile exports. As the largest economy in Europe, Germany is the "bridgehead" for Chinese brands to enter the European high - end market. In 2023, China surpassed Japan to become the world's largest automobile exporter. In 2025, the monthly sales of Chinese electric vehicles in Europe exceeded 100,000, with a market share of 9.5% and a year - on - year growth rate of 127%. Europe has long become the core market for China's automobile globalization.
Obviously, China's cooperation with Germany can clear many obstacles for Chinese brands to enter the European market. For example, the promotion of mutual recognition of Sino - German automotive standards enables brands such as BYD, Geely, and NIO to better meet European technical and environmental protection regulations. For example, Germany's advantages in green manufacturing, carbon footprint management, and automotive - grade chips can also make up for some shortcomings in China's automotive industry, achieving complementary advantages between the two sides.
At the same time, the intense competition in the domestic new - energy vehicle market is forcing Chinese brands to seek growth overseas. As the world's high - end automobile market, Europe can not only bring sales growth but also enhance the international premium and influence of Chinese brands. However, all of this is an advanced step in globalization sought by China's automotive industry on the basis of its structural advantages.
From the official media reports, Merz's visit to China has basically set the tone of "two - way co - creation and in - depth binding" for Sino - German automotive industry cooperation and will also promote deeper - level cooperation between the two sides. In the future, German car companies will accelerate their localization in China. In 2026, nine new Mercedes - Benz models will be equipped with Chinese intelligent driving technology, and BMW's new - generation models will make their debut in China. The electrification transformation of German car companies will increasingly rely on China's technology and market. Chinese brands will also take advantage of the opportunity of Sino - German cooperation to further penetrate the European market and accelerate the pace of globalization.
It cannot be denied that behind this cooperation, the dominance of the Sino - German automotive industry has quietly tilted towards China. China's structural advantages in electrification, intelligence, and the battery field, with a complete supply chain, economies of scale, and technological barriers, have forced German car companies to take the initiative to get closer. China's huge market size has become the core confidence for German car companies' electrification transformation. What Germany can offer to China is mainly access to the European market, some high - end manufacturing experience, and automotive - grade chips and other components. The balance of cooperation chips has long tilted towards China.
The deep - level dependence of the German automotive industry and even the German economy on the Chinese market and technology is not accidental but an inevitable result of the wave of electrification, an inevitable result of the reconstruction of the global industrial pattern, and the best proof of the rise of China's automotive industry. China's equal voice and even dominance in Sino - German cooperation stem from its real industrial strength.
Perhaps, as the title of an article in the German newspaper "Handelsblatt" says, "Bundeskanzler Merz darf in China alles machen, nur keinen Kotau", which implies: Chancellor, you can do anything in China, but please don't kneel! However, given the reality of the German automotive industry, they have already bowed their heads.
This article is from the WeChat public account "Automotive Commune" (ID: iAUTO2010), author: Du Yuxin, published by 36Kr with authorization.