An aerial drone photo taken on May 16, 2024 shows the city test track of Volkswagen China Technology Company (VCTC) in Hefei, east China's Anhui Province. (Photo/Xinhua)

Berlin - The global automotive industry is undergoing a once-in-a-generation transformation. As electrification, digitalization and software-defined vehicles reshape the sector, one lesson is becoming increasingly clear: maintaining competitiveness requires greater openness and deeper international cooperation.

While some voices in Europe have portrayed China's rapid rise in new energy vehicles (NEVs) as a challenge, many of the continent's leading automakers are expanding cooperation with China, recognizing the country's growing role in global automotive innovation.

Volkswagen Group is considering one of its biggest restructurings, and company CEO Oliver Blume has described the automotive sector as undergoing the biggest transformation in history, with electrification, digitalization, and software-defined vehicles reshaping the industry.

Volkswagen's development in China illustrates this trend. Last year, the company opened a full-process research, development and testing center in Hefei, east China's Anhui Province, enabling Volkswagen to conduct full vehicle platform development outside Germany for the first time.

According to Volkswagen, the facility can shorten development cycles by around 30 percent, allowing it to respond more rapidly to market demand.

German industry experts have also recognized this shift. Ferdinand Dudenhoeffer, a prominent German automotive expert, has noted that Chinese vehicles have become increasingly competitive in quality, price and technology. He argues that deeper cooperation with Chinese companies will be essential for German automakers seeking to strengthen their global competitiveness.

As Blume has argued, competition is a positive force that encourages companies to improve and ultimately benefits consumers through better products and faster innovation. Fair competition and open cooperation are not contradictory, but mutually reinforcing.

China offers the world's largest NEV market and one of the most dynamic innovation ecosystems, while Europe retains longstanding strengths in engineering, manufacturing and globally recognized brands. These complementary advantages provide a solid foundation for deeper cooperation.

This strategic pivot is echoed across the European industrial landscape. Bosch has announced a multi-billion-yuan investment plan in Suzhou, in east China's Jiangsu province, to strengthen intelligent driving innovation, while BASF and Siemens Healthineers are also expanding long-term investment in the Chinese market. These decisions demonstrate continued confidence in China's innovation capabilities and market potential.

Moreover, this cooperation is becoming increasingly two-way. According to Germany Trade & Invest, Chinese companies launched 228 investment projects in Germany last year, making China the largest source of foreign direct investment projects in Germany by number for the first time since 2017. Chinese companies such as CATL and NIO have established production or research facilities in Germany, bringing investment, technology and skilled jobs to local industries.

The experience of companies on both sides suggests that practical cooperation, rather than protectionism, is the most effective path to enhancing competitiveness, advancing the green transition and achieving sustainable development for both China and Europe.