Name: Chinese tech opens shop in Germany: Can Europe still catch up in cutting-edge technology? | DW News
Uploaded: 2026-01-09T17:21:53.000Z
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The automotive industry was once the pride of Europe.

It still supports 13 million jobs and generates 7% of total European economic output.

But the shift to electric mobility took longer than expected.

The battery, which is the core component of an electric car, usually doesn't come from Europe, but

Six of the top 10 battery cell manufacturers are from China.

In Chinese, producers already control over 67% of the global market.

Long transport routes and geopolitical tensions pose challenges to global supply chains.

Battery manufacturers CATL is therefore moving production closer to its European customers.

In 2023, the world market leader launched its first plant in Amstadt of touring gear.

We were invited to their sprawling factory.

At the entrance, staff asked us to cover our smartphone cameras, a common practice in high tech industries.

At Catl, they seem to be particularly cautious.

A drone flight through a factory in China.

CATL operates more than 10 highly automated factories worldwide.

Currently, only one is located outside of China.

In Turingia, 14 gigawatt hours of battery capacity are produced every year, enough to power more than 200,000 electric cars.

It's centrally located in Europe and close to German automakers such as Audi and Porsche.

And Catl's batteries are constantly getting better and better.

Substantial investments in research and development have help batteries store more energy and charge faster, while also becoming safer.

German research institutions, such as the Fraunhofer Ikart S right next door here in Arnstadt, have also contributed to this.

Welling force Eigenschaften undasfahalten.

Over time, battery cells swell, which can affect their lifespan.

Under what circumstances does this tend to happen most quickly?

Answers to such questions could help manufacturers build even more powerful batteries.

Decades ago, when many German companies were wanted to go to China in order to set up factories and produce at low costs, China was clearly in a role of students.

But now this country has already been technology leader in many respects, and

the roles of students and teachers are no more clearly defined.

China's leading role in many important sectors is thanks to an ambitious industrial strategy Made in China 2025.

Officially announced 10 years ago, the plan envisions China achieving technological leadership in 10 key industries by 2025, including automotive and battery technology, where it has been particularly successful.

For European industry, this means growing challeng.

A major success factor is undoubtedly the high level of investment in research.

In recent decades, Chinese research spending has increased dramatically worldwide.

Only the US invests more in research and development.

China is thus moving towards technological leadership.

However, its ambitious industrial policy with massive subsidies, is driving output well beyond what the domestic market can absorb.

China's export surplus keeps increasing, straining its relationships with trading partners.

In the end, everyone will likely lose out.

It's a lose, lose game and I said that it's very unsustainable.

On the Chinese side, Chinese industrial policies have been extremely wasteful.

They misallocate resources, they have slowed Chinese economy down.

And so in the short term, it will probably appear like Chinese industrial policy is winning, but

in the long term, it's probably not going to be as successful and as sustainable.

Meanwhile, Europe needs to do its own homework to avoid becoming completely dependent on Chinese manufacturers.

Can Europe still bridge the gap in battery innovation.

The Chinese leadership is showing continuity in its industry policy and fueling a race for cutting edge technology and market share.

Chinese companies like Catl are pushing into the European market with increasingly powerful products and are already building more factories in Europe in order to be closer to clients and gain better market access.