Germany, China explore deeper cooperation in ever-evolving auto sector

Germany and China are seeking ways to go up a gear and strengthen cooperation in the automotive industry, with the two-way partnership bringing German carmakers closer to the Chinese market and supporting Chinese counterparts to enter Europe.

Ties between the two sides are in the spotlight this week as German Chancellor Friedrich Merz arrived in China on Wednesday for a two-day official visit, his first since taking office last May. Merz is accompanied by top executives from 30 German firms, including major automakers such as Volkswagen ‌and BMW.

Under Volkswagen's "In China, For China" strategy, which aims to design and build vehicles for the Chinese market right in the country, the German auto giant has partnered with local firms like Xpeng to co-develop advanced vehicle electronics and smart systems.

Similarly, Germany's Audi is expanding its research and development partnership with China's SAIC by developing a China-specific subbrand as well as related tech platforms.

While German automobile manufacturers are increasing operations in China, Chinese brands have also been looking to tap into the European market too, with companies like Li Auto and Xiaomi opening new research centers in Germany.

Beatrix Keim, director of business development at CAR Center Automotive Research, a German institute focused on the future of the auto sector, has been dedicated to helping Chinese carmakers -- which she notes have been leading the way in battery technology -- venture into the European market.

"China's automotive industry has been on a higher scale and [started] a bit earlier in battery electric development, so to take this technology advantage and bring it into the European manufacturers, and [here] of course it is helping as well the Chinese brands to come into the European market, because if the people know there is cooperation going on, they'll have less caveat towards the Chinese brands," she said.

Similarly, Alexander Klose, CEO of Euro EV, said his company has been working with Chinese brands to help them develop more efficient and diverse electric vehicles (EVs) for the European market.

"We want to help the brands in China to understand what are the specific needs of Europe, develop those into a proper product and then have the Chinese brands engineer those on the basis of what they already have, and then [have those] brought back to Europe again," he said.

Germany, China explore deeper cooperation in ever-evolving auto sector

China is continuing to experience a box office boom this year, driven by a nationwide campaign to spur consumption with cheaper cinema tickets while a series of big summer releases are also enticing film fans out to theaters up and down the country.

Seen as one of the most lucrative periods of the year, China's summer box office season, which officially runs from June 1 to August 31, has now generated more than 10.7 billion yuan in box office revenue as of midday Thursday.

This has helped propel China's total box office revenue for 2026 above 26.5 billion yuan (over 3.9 billion U.S. dollars) as of Thursday afternoon, with more than 670 million moviegoers and over 96 million screenings recorded, according to the latest data from a leading Chinese ticketing platform.

The diverse line-up of summer blockbusters covers a broad range of genres, including comedy, animation, sci-fi, war, and suspense and action, offering audiences more choices and helping attract viewers from different age groups and with different interests.

Among the best performers is the anti-war film "Once Upon a Time in the Middle East," which tells the story of a chef working at a Chinese restaurant in the Middle East when war breaks out in the 2000s. It has drawn positive feedback both for its perspective on war and the vivid portrayal of life in the Middle East.

In just 10 days since its release on Aug. 11, the film has raked in over 1.2 billion yuan, catapulting it up the box office charts as it closes in on the year's biggest grossing films.

Ticketing data shows that the current top four on China's annual box office chart are the auto-racing sequel "Pegasus 3", Hong Kong director Stephen Chow's sports comedy "Kung Fu Soccer" about a team of female footballers, the touching family drama "Dear You", and animated film "All Wishes Come True!"

China launched a nationwide campaign this year to boost the cinema sector, with at least 1.2 billion yuan in subsidies planned throughout 2026 to make movie-going more affordable. Data shows the average ticket price for domestic-made movies has dropped to 39.5 yuan (less than 6 U.S. dollars) this year, some 20 percent lower in 2025.

China's summer film season continues as consumption campaign entices moviegoers