Volkswagen Group China's headquarters in Beijing Photo: VCG

On the occasion of SAIC Volkswagen's 40th anniversary,MK sport SAIC Motor and the Volkswagen Group signed an extended joint venture (JV) agreement in Shanghai, further strengthening their long-term partnership and prolonging the joint venture period of SAIC Volkswagen until 2040, the Global Times learned from the Volkswagen Group on Thursday.

This agreement follows the actions of other Chinese and European automakers in establishing JVs. It demonstrates the willingness of the China-EU auto market to pursue win-win collaboration despite headwinds of the EU's protectionist tariffs on Chinese electric vehicles (EVs), experts said.

"We are now raising our partnership with SAIC to the next level by making key strategic decisions in areas of product, production and decarbonization. Till 2030, SAIC Volkswagen will launch 18 new models. In total, 15 of these cars will be exclusively developed for the Chinese market," Ralf Brandstätter, a member of the Board of Management of Volkswagen AG for China, said in a statement.

China is, and will remain, a cornerstone of Volkswagen Group's global strategy. Together with our JV partners, we are committed to expanding our investments in the region, Brandstätter said.

The Chinese Foreign Ministry on Thursday denounced false narratives on Northwest China's Xinjiang Uyghur Autonomous Region and vowed to offer more opportunities to foreign firms in response to reports about Volkswagen selling its Xinjiang operations.

Other collaborations between Chinese and European automakers are ongoing despite the headwinds posed by the EU's protectionist approach on Chinese EVs.

On Saturday, China's Chery Automobile and Spain's Ebro-EV Motors celebrated the start of vehicle production at their JV in Barcelona, Spain, with the factory's first output the s700 SUV, the Global Times learned from Chery. 

The two auto companies signed a pact in April to develop new EVs through the JV in Barcelona, which is expected to create 1,250 jobs and churn out 150,000 vehicles in 2029, the Xinhua News Agency reported.

Leapmotor International, a Netherlands-headquartered JV between Chinese automaker Leapmotor and global auto giant Stellantis, started sales operations in Europe in September. It plans to expand distribution to Middle East, Africa, the Asia-Pacific and South America from the fourth quarter of this year, the Global Times learned from Leapmotor.

This collaboration demonstrates that European and Chinese enterprises are leveraging their respective strengths through complementary partnerships to navigate the evolving market landscape and expand the range of products available to meet consumer demand, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday.

"This cooperation not only aligns with the interests of both parties but is also driven by market dynamics," Zhou said.

Extensive opportunities for collaboration and shared interests have fostered a mutually beneficial environment between Chinese and European auto companies. However, the EU's decision to impose extra tariffs on China-made EVs could have a detrimental impact on global supply chain cooperation, Jian Junbo, a deputy director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times on Thursday.

This not only threatens the trade relationship between China and Europe but also risks to hinder the development and technological innovation of the global EV industry, Jian said.

He noted that the extra tariffs will impede the adoption of EVs within the EU and impede the innovation progress of European automotive companies, possibly leading to a loss of competitive advantage in the EU.

While announcing the imposition of tariffs on October 29, the European side said it will continue with price commitment consultations with the Chinese side, Xinhua reported.