China Germany Auto Industry Cooperation to Enhance Supply Chain Stability

In a significant move to strengthen ties within the automotive sector, German Chancellor Friedrich Merz recently took a test drive in the new Mercedes-Benz S-Class. This experience, featuring the advanced L2 Urban and Highway Navigation System developed in collaboration with Chinese technology firm Momenta, exemplifies the growing synergy between China and Germany.

Experts emphasize this collaboration as indicative of Germany's ambition to deepen automotive partnerships with China, which stands as one of its most vital trading partners. Following the test ride, Merz expressed appreciation for the innovative technology and praised the cooperation between the two firms in the realm of intelligent vehicles.

The intelligent assisted driving system showcased during the test drive is seamlessly integrated into Mercedes-Benz's MB.OS, an architecture that connects various vehicle domains, including driving assistance and control systems. This integration not only reflects the technological advancements in the sector but also represents a unified approach towards creating an evolving intelligent ecosystem.

Oliver Thöne, a board member of Mercedes-Benz Group AG responsible for Greater China, highlighted the importance of China as a major market, noting the company’s established presence in the region. It boasts the largest production base and a comprehensive research and development structure outside of Germany, serving over 7 million customers.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, pointed out that the collaboration between traditional manufacturers like Mercedes-Benz and innovative Chinese tech companies could revitalize traditional manufacturing, leading to mutual benefits. The German Chancellor’s involvement signifies recognition of this beneficial partnership.

During the visit, Oliver Zipse, chairperson of the BMW Group, accompanied Merz and announced a memorandum of understanding with Contemporary Amperex Technology Co. Zipse emphasized the growing importance of the Chinese market, suggesting that companies ignoring its potential may miss out on significant growth opportunities.

The automobile sector is a crucial pillar of economic collaboration between China and Germany, undergoing transformation not seen in a century, as technologies like artificial intelligence and big data intertwine with automotive production. This shift is reshaping the industry’s competitive landscape.

China and Germany’s automotive cooperation is enriched by longstanding interactions that foster technological exchanges, enhancing the competitiveness of both nations. German manufacturers have leveraged China's rapidly growing market while Chinese firms access advanced technologies, creating a mutually beneficial ecosystem.

With the 10th China-Germany Automotive Conference set for October 30, 2026, in Wolfsburg, the focus will be on fostering innovative cooperation within the automotive industry supply chain. This event is expected to pave the way for collaborative agreements and industry consensus.

Experts believe that to ensure supply chain stability and industry upgrades, both countries should enhance complementary cooperation beyond manufacturing, exploring synergies in technology and policy. Strengthening ties amid global uncertainties could provide a resilient framework for sustainable collaboration.