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Berlin – As German Economy Minister Robert Habeck prepares for a trip to China alongside a business delegation led by Markus Kerber, BMW Chief Executive Oliver Zipse has issued a stark warning: German automakers cannot afford to ignore the world’s largest automotive market if they wish to remain competitive on a global scale. Zipse’s comments, made ahead of the planned visit, underscore the complex relationship between Germany’s industrial powerhouse and China, a relationship increasingly scrutinized amid geopolitical tensions and concerns over economic dependence.
The BMW CEO’s assessment comes as Germany grapples with slowing economic growth and increasing pressure to diversify its trade relationships. China represents a crucial market for German automotive manufacturers, accounting for a significant portion of their sales. According to Reuters, Zipse warned that neglecting China would jeopardize future economic success. This dependence, however, has sparked debate within Germany about the risks of over-reliance on a single market, particularly one with differing political values and economic practices.
Zipse, who has been chairman of the board of management of BMW since August 2019, has consistently emphasized the importance of the Chinese market for the company’s continued growth. Born in 1964, Zipse’s career has been entirely within BMW AG, starting as a trainee in 1991 and progressing through various leadership positions in development, production, and planning before ascending to the CEO role. His extensive experience within the company provides a unique perspective on the challenges and opportunities presented by the Chinese market.
China’s Impact on BMW and the Broader Automotive Industry
The overall market weakness in China, coupled with subdued demand for electric vehicles in certain markets, has already impacted BMW’s business, as noted in a May 2025 BMW Group report. The company’s iX3 model, an electric sport utility vehicle featuring ultra-fast charging, exemplifies BMW’s efforts to cater to the growing demand for EVs in China, as discussed by Zipse in a September 2025 YouTube interview. However, the broader automotive industry faces challenges navigating the complexities of the Chinese market, including intense competition from domestic manufacturers and evolving regulatory requirements.
The German automotive industry’s reliance on China extends beyond sales. The country is a key source of raw materials and components essential for vehicle production. Disruptions to supply chains, whether due to geopolitical events or economic factors, can have a significant impact on German manufacturers. This interconnectedness highlights the need for a balanced approach, one that acknowledges the importance of the Chinese market while also mitigating potential risks.
Geopolitical Context and the Merz Trip
The upcoming trip led by Economy Minister Habeck and Markus Kerber, head of the German Association of Chambers of Commerce and Industry (DIHK), aims to address these concerns and foster dialogue with Chinese officials. The delegation will likely discuss issues such as market access, intellectual property protection, and fair competition. The visit comes at a sensitive time, as relations between Germany and China have been strained by concerns over human rights, trade imbalances, and China’s stance on the war in Ukraine.
The German government has been under pressure from both within and from international partners to adopt a more assertive stance towards China. Some policymakers advocate for reducing economic dependence on China and diversifying trade relationships. Others argue that maintaining a strong economic relationship is essential for influencing China’s behavior and promoting shared interests. The debate reflects a broader geopolitical struggle between the United States and China, with Germany caught in the middle.
What to Watch Next
The outcome of the Habeck-led delegation’s visit to China will be closely watched for signals of potential shifts in the economic relationship. Key areas to monitor include any commitments from China to improve market access for German companies, address concerns over intellectual property protection, and ensure fair competition. The evolving dynamics of the global automotive industry, particularly the transition to electric vehicles, will continue to shape the relationship between Germany and China. The success of German automakers in navigating these challenges will be crucial for maintaining their competitiveness in the years to come.
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