Schaeffler CEO: China is also dependent on Europe - Germany's Merz leads business push in China amid tech and auto tensions
Chancellor Friedrich Merz is preparing for a high-profile visit to China, accompanied by a delegation of German business leaders. The trip comes as economic ties between the two nations remain strong, particularly in the automotive and technology sectors. Schaeffler Group, a key player in this relationship, has called for Europe to assert its strengths while navigating challenges posed by China's dominance in critical materials and emerging technologies.
German companies have continued investing in China despite geopolitical tensions. Since 2020, firms like Bosch, Continental, and ZF have expanded their Chinese production facilities, driven by the rapid growth of electric vehicles. Bosch, for example, has opened new plants for EV components in both 2022 and 2024.
Schaeffler Group, a major supplier to both European and Chinese auto traders, has deep roots in the country. The company not only serves domestic manufacturers but is also pushing into future technologies, including components for humanoid robots. CEO Klaus Rosenfeld has stressed that Europe must focus on its own advantages, particularly in defence and cutting-edge sectors. He insists these areas should remain 'China-free' to protect strategic interests.
The visit underscores the complex but mutually beneficial economic relationship. While China holds a strong position in raw materials and certain technologies, German firms continue to see value in the partnership. Rosenfeld's comments reflect broader concerns about balancing cooperation with competition in key industries.
The delegation's trip highlights the ongoing interdependence between Europe and China, especially in cars and tech sectors. German investments in China remain steady, even as calls grow for Europe to safeguard its own industrial strengths. The outcome of these discussions could shape future economic policies and trade strategies between the two regions.
