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Volkswagen China’s chief seeks data transfer clarity from Premier Li.

ReutersJune 27, 2023

Volkswagen Seeks Clarity on Cross-Border Data Transfers in China

BERLIN (Reuters) – Volkswagen’s head of its business in China said on Tuesday that the carmaker needed clarity on cross-border data transfers in a meeting with the country’s Premier Li Qiang, asking how China would cooperate with Europe amid rising political tensions.

“As a globalized industry, the transformation of the automotive sector highly depends on international exchange of personnel, data and knowledge. We therefore need more clarity on cross-border data transfers,” executive Ralf Brandstaetter said, according to a copy of the speech held at a World Economic Forum meeting in Tianjin.

“What are the major considerations of China, and how China will cooperate with Europe in this regard?” he added.

Volkswagen has created separate supply relationships for software including chips in each major region – U.S. chipmaker Qualcomm in North America, Franco-Italian STMicrolectronics in Europe and Horizon Robotics in China.

It is also investing around 1 billion euros ($1.10 billion) in a new development and procurement centre for electric vehicles in Hefei, China due to open in 2024, further ringfencing its technological development in the region.

Brandstaetter also said the market for electric, plug-in and fuel cell vehicles was becoming too crowded and funds were lacking for the market to develop.

More than 40 electric vehicle makers from Tesla to BYD and Nio have slashed prices in China this year in a fight for market share as car demand slumps.

SAIC Volkswagen Automotive Co joined in the price war in March, offering 3.7 billion yuan ($512.52 million) in cash subsidies for car purchases in China.

($1 = 7.2193 Chinese yuan renminbi)

(Reporting by Victoria Waldersee; editing by Matthias Williams)