On July 31st, Nanhua Early News reported that as Sino-European trade tensions escalate, China and Germany are striving to reach an agreement on smart car standards. The background of this cooperation is that Chinese automakers are seeking to test their driverless technology in the European market.
Reports indicate that car manufacturers from China and Germany held their first joint working group meeting this year to coordinate standards for intelligent connected vehicles. They are seeking cooperation in the context of accusations of trade imbalance in Europe and escalating economic and trade tensions between China and Europe.
This information comes from a announcement posted on the WeChat public account of the China Automotive Standardization Research Institute on July 30th.
The announcement states that on July 29, in accordance with the requirements of the Joint Statement on Cooperation Intentions in the Field of Intelligent Connected Vehicles between the Chinese and German governments, the Working Group on Standards and Specifications for Intelligent Connected Vehicles between China and Germany held its first meeting in Beijing in 2026.
During the meeting, more than 40 representatives from industry associations, research institutions, and automobile manufacturers attended. Among them were Chinese companies such as BYD, Geely, SAIC, Xpeng, and Xiaomi, as well as German companies like Mercedes-Benz, BMW, Volkswagen, and Porsche.
In the context of the Sino-German cooperation on intelligent connected vehicles, delegations from both sides conducted exchanges and discussions regarding the progress of research on standards and regulations for intelligent connected vehicles between China and Germany, as well as implementation experiences. Additionally, a joint research project between China and Germany was launched.
Chinese and German experts have conducted information exchanges and discussions on various topics, including the progress of pilot programs for the approval of intelligent connected vehicles in China, the European DCAS framework, the application guidelines for safety requirements in combined driving assistance systems, the implementation practices of EU vehicle data regulations, the planning and progress of parking-related standards, as well as global regulatory harmonization and best practices. They have also launched a joint research project between China and Germany to study the standardization needs regarding the cross-border circulation of vehicle data.
It is reported that the National Automotive Standards Committee’s Intelligent Connected Vehicles Subcommittee and the German Automotive Industry Association will continue to organize industry implementation plans under the guidance of the competent government departments in both China and Germany. They will strengthen communication and cooperation at the standard and regulation level, thereby facilitating the establishment of an efficient international exchange platform in the fields of technology, talent, and industry between the two countries.
And on the same day, there is another news related to the automotive industry that deserves attention.
On July 29, the "Travel" section of Observer Network reported that intelligent driving company Momenta announced that it has obtained a L4-level autonomous driving test license from the German Federal Motor Transport Authority (KBA). Tests can now be conducted on urban roads across Germany, without the need to apply for licenses for each city individually. This is the first time a Chinese company has received such a license covering all urban roads in Germany. However, this approval is only for road testing purposes and does not mean that Robotaxi has obtained commercial operating permission.
Chinese car companies' pace of innovation and competitive capabilities are putting pressure on traditional European car companies. Over the past week, several German car manufacturers have signaled plans to cut jobs to reduce costs. For example, BMW plans to reduce 8,000 jobs by the end of 2027, while Porsche expects to cut 9,000 jobs by 2035.
Over the past period, trade tensions between China and Europe have been increasing. The European Union has accused China of having a large trade surplus to Europe, and has hyped up the widening trade imbalance between the two regions. It has launched anti-subsidy investigations against Chinese exports, and has labeled industries such as wind power, photovoltaics, and steel as having "overcapacity." At the same time, using the pretext of "security," economic issues are being politicized, and efforts are made to reduce risks in supply chains. Restrictions have been imposed on China in high-tech fields like communications and AI. Currently, the European Union is accelerating the introduction of relevant laws and drafting trade defense measures. As a result, some foreign media are claiming that a "trade war between China and Europe" is brewing.
In this regard, China emphasizes that mutual benefit and win-win results are fundamental. If the European side insists on implementing discriminatory restrictions, China will resolutely take effective countermeasures. China has always been open to positive dialogue and cooperative negotiations with Europe, and also hopes that European enterprises will regard the Chinese market as their best "gym". As relations between China and Europe become more tense, on June 29th, Wang Wentao, Minister of Commerce of China, and Maroš Šefčovič, Commissioner for Trade, Economic Security, Inter-institutional Relations and Transparency of the European Commission, held the first meeting of the China-EU Trade and Investment Consultation Mechanism in Brussels.
On July 30, He Yadong, spokesman for the Chinese Ministry of Commerce, stated at a regular press conference that over the past month, both sides have actively implemented the consensus reached at the first meeting and are fully preparing for the second meeting. There has been intensive internal coordination, and high-frequency consultations at multiple levels have been maintained with external parties. The working groups of China and Europe have conducted more than 20 consultations, and four working groups have engaged in in-depth and professional communication regarding each other's economic and trade demands. China is willing to continue maintaining frequent communication with the European side, respecting each other and working together towards common goals. We will explore practical and feasible solutions to address the respective concerns in the economic and trade fields, promote balanced and forward-looking development of Sino-European trade, and ensure the stability and balance of the crucial trade partnership between China and Europe.
