{"id":6991,"date":"2026-04-27T07:02:21","date_gmt":"2026-04-27T07:02:21","guid":{"rendered":"https:\/\/8657085.xyz\/?p=6991"},"modified":"2026-04-27T07:02:21","modified_gmt":"2026-04-27T07:02:21","slug":"joint-venture-in-reverse-foreign-carmakers-seek-edge-with-china-partners","status":"publish","type":"post","link":"https:\/\/8657085.xyz\/?p=6991","title":{"rendered":"&#8216;Joint venture in reverse&#8217;: foreign carmakers seek edge with China partners"},"content":{"rendered":"<p> <div style=\"display: grid; grid-template-columns: 300px 160px; gap: 2px; width: 460px; background: #eee; padding: 2px;\">\r\n\r\n  <!-- \u6574\u884c\u5bbd\u5e7f\u544a -->\r\n  <div style=\"grid-column: 1\/-1; width: 460px; height: 250px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876674\"><\/ins> \r\n <script>(AdProvider = 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{}});<\/script>\r\n<\/div><br \/>\n<\/p>\n<div>\n<p><em><small>Visitors walk past the booth of Chinese automaker XPeng at the Beijing Auto Show &#8211; Copyright CN-STR\/AFP &#8211;<\/small><\/em><\/p>\n<p><em>Jing Xuan Teng with Rebecca Bailey in Shanghai, Luna Lin in Beijing and Julien Girault in Tokyo<\/em><\/p>\n<p>In a sprawling office in Hefei, the eastern Chinese electric vehicle hub, hundreds of employees and several robotic arms sat refining software developed jointly by German behemoth Volkswagen and Chinese EV maker XPeng.<\/p>\n<p>The days when foreign firms saw such partnerships largely as a necessary entrance fee to the world\u2019s largest auto market are long gone.<\/p>\n<p>Legacy overseas brands are now seeking out collaboration, hoping the domestic market\u2019s blistering pace and technological innovation will rub off and boost their competitiveness in China and increasingly, abroad.<\/p>\n<p>VW-XPeng\u2019s China Electronic Architecture (CEA) \u2014 software that controls a car\u2019s electronics \u2014 was delivered within 18 months, said Frank Han, CEO of Cariad China, VW\u2019s software company.<\/p>\n<p>Without XPeng\u2019s cooperation, it would have taken much longer, he told reporters on a trip this week ahead of a major auto show in Beijing.<\/p>\n<p>\u201cIn Germany, (it would take) at least three to four years,\u201d he said.<\/p>\n<p>From China\u2019s opening up until recently, carmakers seeking market access had to enter a joint venture with a local, often state-owned company.<\/p>\n<p>As well as sharing profits, domestic firms benefited from their overseas partners\u2019 shared technology and best practice.<\/p>\n<p>\u201cYou can basically call the current situation \u2018the reverse joint venture\u2019,\u201d said Zhang Yu, managing director of Shanghai-based consultancy Automotive Foresight.<\/p>\n<p>\u201cForeign partners are starting to use local Chinese partners\u2019 technology or EV platforms to modify \u2014 or actually directly build a new car \u2014 based on their Chinese partners\u2019 car.\u201d<\/p>\n<p>\u2013\u00a0\u2018Shocking moment\u2019 \u2013<\/p>\n<p>For decades, China was a cash cow for many legacy brands, requiring minimal investment and offering huge gains.<\/p>\n<p>But as the EV age dawned, helped by top-down policy such as generous subsidies, Chinese firms hit the throttle.<\/p>\n<p>After the isolation of Covid and against a backdrop of sliding sales, the 2023 Shanghai auto show was \u201ca shocking moment\u201d for foreign visitors, UBS analyst Paul Gong told AFP.<\/p>\n<p>He described the relative speeds of pandemic-era development as like \u201cinterstellar travelling \u2014 inside, China had leapt forwards while outside, global carmakers lagged\u201d.<\/p>\n<p>China is now considered by many as leading in areas like smart cockpits, battery technology and assisted driving systems.<\/p>\n<p>Ford CEO\u00a0Jim Farley has called the progress \u201cthe most humbling thing I\u2019ve ever seen\u201d.<\/p>\n<p>By 2025, foreign brands were increasingly adopting Chinese tech.<\/p>\n<p>Autonomous driving collaborations included VW with Horizon Robotics, Audi with Huawei, and a variety of firms including Toyota and GM with Momenta.<\/p>\n<p>Models like the Nissan N7, Mazda EZ60, and SAIC Audi E5 were developed using joint venture partners\u2019 platforms, and investment was poured into research and development teams in China.<\/p>\n<p>\u2013\u00a0\u2018China for the world\u2019 \u2013<\/p>\n<p>Companies are increasingly explicit they hope in-China investments will boost their competitiveness overseas, especially as Chinese firms begin their own expansions abroad.<\/p>\n<p>\u201cThe know-how we gained (in China) is compelling us towards our goal of becoming a leading tech player in the automotive industry worldwide,\u201d VW Group CEO Oliver Blume said on Monday, calling the country \u201cthe fitness centre of the automotive industry\u201d.<\/p>\n<p>He told AFP that VW was eying other Asian countries and South America\u00a0as places that might be receptive to its China-developed offerings.<\/p>\n<p>His counterpart at rival BMW told state news agency Xinhua last year that \u201cthe supply chain here is not only about China for China, but it\u2019s also China for the world\u201d.<\/p>\n<p>For Japan\u2019s Nissan, exports are set to become \u201ca strategic pillar\u201d, the company said in April, as its in-China sales slow.<\/p>\n<p>The China-developed N7 and Frontier Pro will be sent to South America and Southeast Asia, with the latter additionally shipped to the Middle East.<\/p>\n<p>\u201cOur brand is still relevant, even in a very difficult market like China,\u201d CEO Ivan Espinosa told reporters.<\/p>\n<p>\u201cAnd if you can compete in China, you can compete outside of China.\u201d<\/p>\n<p>France\u2019s Renault, meanwhile, has stopped selling cars in China but uses its partnerships there for tech development.<\/p>\n<p>One example is the Dacia Spring, manufactured by state-owned Dongfeng, a small EV which significantly undercut competitors when it began selling in Europe in 2021.<\/p>\n<p>\u2013 Ecosystem advantage \u2013<\/p>\n<p>The scorecard for foreign automakers\u2019 pivot is \u201cmixed\u201d, said UBS\u2019s Gong.<\/p>\n<p>While they have not regained market share in China, \u201ctheir products and technologies have improved\u201d, which could help them in other markets like Europe, he said.<\/p>\n<p>\u201cTheir challenges would be greater without\u201d that strategy, he concluded.<\/p>\n<p>To an extent, foreign firms have little choice.<\/p>\n<p>\u201cThe advantage Chinese firms hold is not tied to a single technology or model, but to an integrated ecosystem,\u201d Chris Liu from research group Omdia told AFP.<\/p>\n<p>The combination of software engineering talent, proximity to suppliers, and real-world data accessibility \u201cis difficult for foreign automakers to replicate outside of China\u201d.<\/p>\n<p>And foreign brands need to make \u201cdrastic decisions\u201d that go beyond just product, said founder of Sino Auto Insights, Tu Le.<\/p>\n<p>\u201cIt\u2019s culture, speed, shuttering brands, eliminating management that don\u2019t have the right skills to lead them,\u201d he said.<\/p>\n<p>\u201c\u2018Learning\u2019 (from Chinese firms) is only part of the answer.\u201d<\/p>\n<\/p><\/div>\n<p><!-- \u603b\u5bb9\u5668\uff1a\u6700\u5927\u5bbd908px Grid\u7d27\u51d1\u5e03\u5c40 -->\r\n<div style=\"display: grid; grid-template-columns: 728px 160px; gap:2px; width:908px; background:#eee; padding:2px;\">\r\n\r\n  <!-- \u901a\u680f\u9876\u90e8\uff1a\u6700\u5927\u6a2a\u5e45 908x258 \u8de8\u6574\u884c -->\r\n  <div style=\"grid-column:1\/-1; height:258px; background:#ff6b6b; display:grid; place-items:center;\">\r\n    <!-- JuicyAds v3.0 -->\r\n<script type=\"text\/javascript\" data-cfasync=\"false\" async src=\"https:\/\/poweredby.jads.co\/js\/jads.js\"><\/script>\r\n<ins id=\"1114307\" 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END-->\r\n  <\/div>\r\n\r\n<\/div><br \/>\n<br \/> &#8216;Joint venture in reverse&#8217;: foreign carmakers seek edge with China partners<br \/>\n<br \/>#Joint #venture #reverse #foreign #carmakers #seek #edge #China #partners<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Visitors walk past the booth of Chinese automaker XPeng at the Beijing Auto Show 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