A SAIC Volkswagen ID.6 X is displayed at the 20th Shanghai International Automobile Industry Exhibition in East China's Shanghai, April 24, 2023. Photo: Xinhua

China and Germany have good prospects in the automobile industry and the two countries share vast cooperation potential, Chinese Vice Premier Ding Xuexiang said on Wednesday in a meeting with Oliver Blume, chairman of Volkswagen Group, the largest carmaker in Europe.

The meeting comes after the EU's decision to launch an anti-subsidy investigation into electric vehicles manufactured in China. The EU's move has drawn strong criticism from industry insiders, who argue that the investigation is groundless and an act of protectionism that will only disrupt the normal cooperation between China and the EU in the industrial and supply chain.

Ding noted that China and Germany have strong economic complementarity and vast potential for cooperation. The two countries should work together to promote trade and investment liberalization, jointly safeguard the stability and security of global industrial chains, and contribute to world economic growth, he said.

Ding added that China is committed to providing a better environment for foreign companies, including Volkswagen, to invest and operate in China. China welcomes Volkswagen to continue leveraging its strengths and expand its investment in China, achieving greater development through win-win cooperation.

Blume thanked China for the strong support given to the group and said that Volkswagen will increase investments in key areas to further expand its presence in the Chinese market.

Volkswagen is strengthening its position in the Chinese automotive market and has acquired a 4.99 percent stake in Chinese electric vehicle maker Xpeng for $700 million, the group said in a statement in July.

During a previous interview with the Xinhua News Agency, Blume said that Volkswagen is confident in China's development prospects and said the continuous growth of the Chinese economy will contribute to expanding its business globally.

China is the largest single market for Volkswagen, according to Blume. "I have great confidence in the Chinese consumer market," he said.

China's automotive production and sales reached a new high in September, up 6.6 percent and 9.5 percent respectively from the same period last year, according to data released on Wednesday by the China Association of Automobile Manufacturers (CAAM).

China's automotive exports also saw an increase, rising 47.7 percent year-on-year to 444,000 units in September, exceeding the 400,000 level for the second consecutive month.

New-energy vehicles saw even higher export growth. In September, the number of new-energy vehicles exported was 96,000 units, up 92.8 percent from the same period last year. In the first nine months, the exports of new-energy vehicles reached 825,000 units, an increase of over 100 percent. The main export markets are Belgium, Thailand, and the UK, according to the CAAM.

The surge comes at a time when the EU is set to launch an anti-subsidy probe into Chinese electric vehicles. This move has been criticized by industry insiders, who argue that it disrupts normal China-EU industrial and supply chain cooperation.

The CAAM said in a statement on October 4 that the EU's decision to initiate an anti-subsidy investigation is baseless and a clear act of protectionism, adding that it will cast a shadow over the global development of electric vehicles and hinder the progress of the electric vehicle industry, including that of the EU.

"The automotive industries of China and Europe are partners rather than competitors, and the development of the automotive industry relies on fair competition rather than protectionism," the CAAM said.

Global Times