Illustration: Chen Xia/GT

As the global automotive industry transitions to electrification,MK socks recent collaboration between Volkswagen Group's China subsidiary and CATL carries profound symbolic significance and practical value. It not only signifies a new phase of deep cooperation between Chinese and German companies in the realm of new-energy vehicles but also serves as an important embodiment of cooperation between the two countries in the green economy.

CATL said on Monday that Volkswagen Group's China subsidiary and CATL plan to collaborate on developing lithium batteries for Volkswagen's electrified cars in China, Reuters reported.

For starters, this partnership is a strategic move that leverages the strengths of both companies. As the world's largest electric vehicle (EV) battery manufacturer, CATL possesses leading technology and strong production capabilities, while Volkswagen, as a giant in the automotive industry both in Germany and globally, has undeniable influence in the Chinese market. 

The synergy of the cooperation allows CATL to expand its market share in the EV battery sector, while Volkswagen accelerates its electrification strategy in China, enhancing its competitive edge in the rapidly growing EV market. 

From a broader perspective, this cooperation could serve as a vivid microcosm of the deepening cooperation between China and Germany in the green field. Against the backdrop of the global green transition, such alliances are crucial for driving technological advancements and meeting the increasing demand for sustainable transportation solutions. Also, it demonstrates the significance of the Chinese market for German companies. China's vast consumer base, rapidly growing demand for EVs and evolving consumption patterns present unparalleled opportunities for German companies.

Take Volkswagen as an example. In 2024, its global battery EV sales stood at 744,800 units, down 3.4 percent year-on-year. Among the total, sales in the US market dropped the most - by 30.5 percent year-on-year to only 49,400 units. However, in the Chinese market, Volkswagen's battery EV sales bucked the trend, reaching 207,400 units, an 8.1 percent increase. These figures clearly show the importance of the Chinese market in the global new-energy vehicle landscape and the necessity for German companies to deepen their presence the Chinese market.

In addition to Volkswagen, many other German companies have recognized the growth opportunities presented by the Chinese market. The Business Confidence Survey Report for 2024/25 released in December by the German Chamber of Commerce in China revealed that 92 percent of German firms intended to continue their operations in the country. Notably, 51 percent of the respondents planned to boost their investment in the next two years. 

Due to differences in politics, the economy and culture between China and Germany, challenges may arise during the cooperation process. Moreover, the uncertainty of the international trade environment may pose challenges to their cooperation.

However, as the CATL-Volkswagen cooperation shows, as long as both sides adhere to the principle of mutual benefit and win-win results and strengthen communication and coordination toward solutions, challenges can be overcome. This is precisely what the Chinese and German business communities are striving to do. 

For instance, a Chinese business delegation is in Germany on a three-day business trip, aiming to strengthen communication and exchanges and deepen practical cooperation with the German business community, the China Council for the Promotion of International Trade, the organizer of the visit, said on Monday on its WeChat account. This visit will focus on automotive industry cooperation. By fostering multi-level interactions and communication, such initiatives help build trust and facilitate practical cooperation between Chinese and German businesses.

The future of China-Germany cooperation extends beyond the Chinese market. By collaborating on innovation, optimizing policy environments and expanding into third-party markets, both countries have the potential to lead the global adoption of green technologies, thus making greater contributions to the global economic green transformation and sustainable development.