According to a Reuters report, BRICS member China is interested in buying various struggling German car factories, including Volkswagen. Volkswagen is one of several German automakers that is winding down production amid worries of closure. However, China is reportedly interested in buying these factories for a foothold in Germany, a source close to Chinese government thinking told Reuters.

Buying the Volkswagen factory would allow China to build influence in Germany’s prized auto industry, home to some of the oldest and most prestigious car brands, the source says. Volkswagen is one of the most prominent companies in Germany: a signal of its industrial growth over the last century. However, with an ongoing global economic slowdown, the country’s industrial companies are struggling. The move would be a huge one for China, allowing it to avoid EU tariffs by building cars in Germany for sale in Europe.

Also Read: China to Follow India? BRICS Nation Reportedly ‘Talking’ to Trump

Furthermore, the move could pose a further threat to European manufacturers’ competitiveness, while putting China and BRICS in a higher position. Chinese companies have invested across a range of industries in Europe’s biggest economy already, from telecommunications to robotics. However, the move to buy Volkswagen and other German automakers would be the country’s first step into European auto companies.

Investment decisions would hinge on the new German government’s stance towards China after an election in February, the source added.

  • BRICS
  • china
  • Germany