Thursday, May 21Thursday, May 21The German automotive supplier Eberspächer is seeking to recover from financial difficulties by expanding its business in China, aiming to triple its revenue in the country by 2028. The company, traditionally a specialist in exhaust systems, plans to produce components in China that may later be integrated into Chinese vehicles exported to Europe. This strategy reflects a broader trend of European suppliers deepening ties with Chinese automakers to offset domestic market challenges .
The move aligns with Beijing’s efforts to strengthen economic relations with Europe amid geopolitical tensions, particularly as the U.S. and EU pursue de-risking strategies to reduce dependence on Chinese supply chains. However, this shift has raised concerns in Europe about over-reliance on Chinese manufacturing, especially in critical sectors like automotive components. The EU is simultaneously pressuring carmakers to diversify chip suppliers after the Nexperia crisis exposed vulnerabilities tied to a single Chinese-linked provider .
China’s influence over European supply chains is further illustrated by its silent coercion tactics, which have led to self-imposed restrictions by European governments and businesses to avoid economic retaliation. This dynamic complicates Europe’s attempts to balance economic cooperation with strategic autonomy, particularly in industries like automotive where Chinese dominance in electric vehicles (EVs) and raw materials (e.g., lithium) is growing . Meanwhile, Germany’s struggles to secure domestic lithium processing—despite EU backing—highlight the challenges of reducing reliance on Chinese-controlled resources .
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