Transitions of Chinese-German business linkages amidst technical paradigm change in the automotive industry

• Applicant: Dr. Julian Schwabe
• Subject Area: Human Geography
• Term: since 2021
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 492601593

The premise of this research project is the technological paradigm shift in automotive drive technology as well as the strongly increasing relevance of software-based functions in vehicles. These dynamics are being strongly pushed by Chinese state actors. State incentive structures in China are aimed at ensuring that significant areas of the value creation of future core technologies in the automotive sector are provided in China by Chinese companies. This is creating new production networks with companies that have not previously been active in the automotive sector and in which established manufacturers and suppliers must position themselves. In this context, interaction and power relations in emerging production networks for electromobility and software-based systems are renegotiated. Against this background, the purpose of this research project is to capture and analyze the emergence and organization of new production networks in the automotive sector in China. The conceptual framework is the concept of global production networks according to Coe and Yeung (2015). The purpose of this concept is to describe and explain the organization and territoriality of globally networked value-added activities and regional development outcomes produced by them. Central parameters of analysis are firm-specific strategies for maximizing value capture, which collectively determine the organizational and spatial distribution of value creation activities within a production network. These strategies are determined on the one hand by internal power resources, and on the other hand by external e.g. industry- and location-specific influences. The main objective of this project is to investigate production networks for new core components of the automotive industry in China with respect to the spatial distribution of value-adding activities, the division of labor between the companies involved, and the interaction and power relations between actors. A particular focus is on the question of how German companies position themselves in such networks. In this context, production networks for batteries and software-based systems will be investigated. This explorative investigation will be conducted using the main methodology of qualitative interviews. A total of 100 interviews with Chinese and German company and industry representatives will be conducted over a project period of 36 months. In order to be able to map emerging production networks of automotive core components in China in a holistic manner, companies from all stages of the value chain will be interviewed. In addition to the interviews, a database will be created based on publicly available information such as statistics, annual reports and press releases, which will embed the interviews with company representatives in the overall context of the industry.

• DFG Programme: Research Grants