According to a commentary in the German newspaper 'Business Report,' the 2025 Shanghai International Auto Show clearly shows that the economic powerhouse of Shanghai has become the center for showcasing the latest automotive technologies, moving away from Detroit or Frankfurt. Chinese automakers are no longer merely imitating brands like Mercedes, BMW, and Volkswagen. The commentary points out that German car manufacturers now wish to catch up with 'Chinese speed' to defend their dwindling market share in China.

The EU seeks to protect its domestic industry against competition from China through punitive tariffs, viewing Chinese companies as having an unfair competitive advantage due to state subsidies. Recently, Brussels has been negotiating with Beijing regarding minimum pricing for Chinese electric vehicles, aiming to replace the controversial punitive tariffs.

The article notes that China often emerges as the ultimate winner in a 'win-win' situation, as tariffs must be paid by manufacturers to the EU, whereas minimum pricing equates to a profit guarantee provided by the state for Chinese car exporters. Ultimately, it is European consumers who bear the cost, effectively funding the future innovations of the Chinese automotive industry.

Chinese manufacturers are already ahead of their German competitors in electric vehicle technology and intelligent driving solutions. The sales profits from Europe will further enhance the R&D capabilities of the Chinese automotive industry. In the fiercely competitive Chinese electric vehicle market, many manufacturers struggle to make profits, making them increasingly reliant on exports, which explains why companies like BYD and NIO have higher prices in the EU market compared to their home market.

The 'Frankfurter Allgemeine Zeitung' has commented on the different responses of China, Japan, and South Korea to the tariff war initiated by Trump. China has taken a hard stance, while Japan has adopted a flexible approach, expressing a willingness to compromise alongside threats to reduce Japanese investments in the US. South Korea has shown the most humility.