German president Steinmeier tests Volkswagen EV in Hefei during China state visit

A test drive in Hefei

German President Frank-Walter Steinmeier began his state visit to China on Tuesday, 27 October, with a tour of the Volkswagen China Technology Company (VCTC) in Hefei, the capital of Anhui province. The centre develops and tests electric vehicles, and according to the company it is the largest development centre outside Germany. Steinmeier said about 3,000 engineers and technology specialists work there on intelligent, fully networked electric cars. At the site he tested a model whose electronic architecture was developed jointly with Xpeng, along with an advanced driver assistance system built with the local partner Horizon Robotics. He also tried a function that parks the vehicle automatically from a mobile phone.

Volkswagen under pressure in China

The visit comes as Volkswagen's business in China is under strain. Group sales in China fell 31.6% year on year in the first half of 2026, while global net profit dropped 30.7% to 3,103 million euros. To meet rising competition from local brands, which have been gaining share in electric vehicles, the group has deepened technology alliances with Chinese companies such as Xpeng and Horizon Robotics. Hefei is central to that push, and the plant there rolled out its 100,000th electric car in August. Ralf Brandstätter, managing director of Volkswagen Group China, put the development gains in figures.

“We develop new models in a time 30 percent shorter and up to 40 percent cheaper than in Germany.”

An employee at the centre, who asked not to be named, said some solutions tested in Hefei were already being introduced at Wolfsburg. The same employee argued that staying competitive depends on succeeding in China now.

China sales-31.6%

Global net profit-30.7%

China sales

-31.6 %

Global net profit

-30.7 %

Data from the article text

Steinmeier's message on China

Speaking to the press in Hefei, Steinmeier urged German business to act with confidence in China. He pointed to the regard in which the country holds German technology.

“When you travel in China, you are amazed at how much Germany and German technology are still valued here.”

He then turned to cooperation at the Volkswagen centre, arguing that developments succeeding in China could later be adopted in Germany and Europe.

“We should be self-confident when it comes to technological cooperation with China.”

Steinmeier also said relations with China are too varied to fit a simple black and white pattern, which is why his trip extends beyond the country's economic centres. His delegation brought no companies, and DW reported that its focus is culture and science, a small diplomatic signal to the hosts. Johannes Volkmann, a CDU politician accompanying the president, said the German economy must not lose its innovation leadership and called for more work on competitive conditions at home.

Itinerary and the wider trip

On Wednesday, 28 October, Steinmeier is due to visit the UNESCO World Heritage village of Hongcun in Yixian county, travelling there by high-speed train with his wife, Elke Büdenbender. Earlier in Anhui, local press reported that he visited the former residence of Li Hongzhang, a politician of the late Qing dynasty, and the Luogang park. The state visit culminates on Friday, 30 October, in Beijing, where talks with Chinese President Xi Jinping and Premier Li Qiang are planned, and Steinmeier stays in China until Saturday, 31 October. It is the first visit by a German president to China since 2018. DW notes that foreign state guests rarely arrive during the annual plenary session of the Communist Party's Central Committee, which is taking place this week.

Chancellor Friedrich Merz is travelling in parallel to Japan, Singapore and South Korea with business representatives. Competitiveness, technology, armaments cooperation and critical raw materials are on the agenda, and Merz is due to visit companies and economic conferences in Tokyo and Seoul. Europe has also agreed to reduce imports of plug-in hybrid vehicles from China, which DGAP China expert Michael Laha called a concrete step that should only be the beginning.