Chinese firms showcase robotics, portable passenger drones at Hannover Messe

Humanoid robotics and consumer aircraft are taking center stage at this year's Hannover-Messe trade fair in Germany, where Chinese companies are once again making a strong impression.

Around 700 Chinese exhibitors are present at the world's biggest industrial fair, making them the second-largest group after Germany.

One of the standout innovations is a so-called Land Aircraft Carrier, a hybrid between a truck and a passenger drone developed by Chinese electric vehicle maker Xpeng.

The carrier is making its European debut at the event, showcasing advancements in e-mobility and autonomous transport.

"The drone is foldable, and then it can be automatically taken into the car. And then when you need it again it can be taken out of the car and unfolded, and then you're ready to go," said Maarten Van Hulten, marketing manager of Xpeng European Holding.

As companies continue to develop next-generation technologies, cross-border partnerships appear set to play a crucial role in shaping the future of industry.

“We're also very proud of the cooperation we have with Volkswagen that has been extended over the past years where we now also support with the products that are on sale in China for Volkswagen,” said Hulten.

Chinese-European collaborations are visible across the showcased technologies at Hannover Messe, and these partnerships appear to be thriving despite ongoing geopolitical tensions.

"In our field, in the field of robotics, we have developed new partnerships with Chinese companies and we are optimistic that this relation will grow in the future," said Grigore Stamatescu, owner of Asti Automation.

Even with this confidence, concerns over data security continue to shape European market dynamics. Skepticism toward both American and Chinese tech firms has led some German distributors to prioritize solutions that keep data stored locally, often using open-source software.

"These humanoid robots are so important, are so deeply into the economy, into the industry. It's important to make the own data. That's why it works so good with Chinese companies because it's open-source. And the German companies have a digital German wall for the data. In the last 40 years for Germany and for China I've seen when everyone works together, we will have completely new solutions, we will find new ways and it would be good for both countries," said Shiar Hido, CEO of Minden Robotics, a company that distributes humanoid robots made by China's LimX Dynamics.

Chinese firms showcase robotics, portable passenger drones at Hannover Messe

The European Central Bank (ECB) decided on Thursday to raise all three key interest rates by 25 basis points.

The deposit facility rate through which the ECB steers the monetary policy stance will be lifted to 2.25 percent and the rates on the main refinancing operations and marginal lending facility will stand at 2.4 percent and 2.65 percent, respectively, the ECB said in a press release.

"The war in the Middle East is generating inflation pressures, and the decision to raise rates is robust across a range of scenarios mapping out how the shock might evolve and affect the medium-term outlook for the euro area," the ECB said.

The ECB's rate hike came at a time when inflation in the euro area was on the rise, driven mainly by energy price hikes due to the Iran conflict.

In its latest projections released on Thursday, the ECB raised its inflation forecasts for both 2026 and 2027 compared with its March outlook. Headline inflation is now expected to average 3.0 percent in 2026 and 2.3 percent in 2027, up from the previous projections of 2.6 percent and 2.0 percent, respectively.

"The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth," the ECB said.

Inflation in the euro area rose to 3.2 percent in May from 3 percent in April as energy prices soared by 10.9 percent. The ECB believes the energy price hikes will push inflation even higher over the summer, noted ECB President Christine Lagarde.

The ECB also lowered its economic growth projections for 2026 and 2027 compared with the March forecast, as it said the euro area economy is expected to grow at 0.8 percent in 2026 and 1.2 percent in 2027.

The interest rate hike on Thursday is the first time that the ECB has lifted its key interest rates since September 2023. The central bank has put interest rates on hold since June last year.

ECB hikes interest rates amid inflationary pressures