Thursday, October 9, 2025

Polaris of Enlightenment

Reports: Chinese firms interested in Volkswagen’s struggling factories

Published 17 January 2025
– By Editorial Staff
2 minute read

Chinese companies are showing interest in buying up Volkswagen’s factories in Germany, a strategic move that could potentially transform the automotive industry in Europe. The investments would strengthen China’s presence in European vehicle production, but also raise concerns about the future of the industry and political reactions.

Volkswagen plans to close its factories in Dresden and Osnabrück by 2027 as part of the company’s fight to cut costs and face stiffening competition from Chinese electric car makers.

Volkswagen might consider selling the Osnabrück factory to a Chinese buyer, according to a person familiar with the company’s deliberations who spoke to Reuters.

However, a Volkswagen spokesperson emphasizes that “We are committed to finding a continued use for the site. The goal must be a viable solution that takes into account the interests of the company and employees”.

Could bypass car tariffs

Chinese investment in Germany has in the past included sectors such as telecommunications and robotics, but establishment in traditional car manufacturing has so far failed to materialize.

The Chinese are interested in car manufacturing in Europe in general, potentially avoiding EU tariffs on imported electric cars and strengthening their market presence, as several manufacturers have already done. For example, BYD is building plants in Hungary and Turkey, while Chery plans to start manufacturing at a former Nissan plant in Spain. Leapmotor has also considered using a factory in Germany for its production.

Reuters also reports that a source close to the Chinese government said that Chinese companies are actively exploring opportunities to buy factories that Volkswagen plans to close.

Volkswagen Wolfsburg
Volkswagen’s crown jewel: Wolfsburg Volkswagen Plant. Photo: High Contrast/CC BY 2.0

A spokesman for China’s Foreign Ministry urged Germany to welcome Chinese investment.

– China has introduced a series of opening-up measures to create new business opportunities for foreign companies … It is hoped that the German side will also uphold an open mind, (and) provide a fair, just and non-discriminatory business environment for Chinese firms to invest.

Opposition from German trade unions

However, a sale of Volkswagen’s plants to Chinese operators could face opposition from German trade unions, which have significant influence and may demand guarantees on jobs and factory locations.

Moreover, relations between Germany and China have become increasingly strained in recent years and, in light of the upcoming German elections, the decision-making process on Chinese investment currently appears somewhat uncertain.

However, selling factories to Chinese companies could prove to be financially beneficial for Volkswagen. According to an anonymous source, a sale could generate revenues of between €100 million and €300 million per plant.

At the same time, it also carries the risk of German car brands losing their historical edge and competitiveness in Germany, which is the largest national car market in Europe.

Facts about Volkswagen:

Volkswagen was founded in 1937 in Germany on the initiative of then Chancellor Adolf Hitler, as part of a drive for a people's car for all. After World War II, the company recovered to become a global automotive player, known for iconic models such as the Volkswagen Type 1 (the "Beetle"). Today, Volkswagen is one of the world's largest car manufacturers, owning brands such as Audi, Porsche and Skoda.

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Bitcoin reaches new record – surpasses $125,000 in value

Alternative economic systems

Published 5 October 2025
– By Editorial Staff
1 minute read

The world’s leading cryptocurrency continues its rise and hit a new all-time high on Sunday, driven by dollar weakness and strong inflows to bitcoin ETFs.

Bitcoin rose to $125,689 on Sunday, once again reaching new record levels. The previous record was set in mid-August when the cryptocurrency reached $124,480.

The rise comes after eight straight days of gains, supported by positive developments in US stock markets and increasing investments in bitcoin ETFs – exchange-traded funds that allow investors to gain exposure to bitcoin without having to buy and store the cryptocurrency themselves. Meanwhile, the US dollar has weakened against most major currencies, partly due to uncertainty surrounding a possible US government shutdown.

Joshua Lim, analyst at crypto broker Falcon X, sees a clear connection:

With many assets at record levels, it’s not surprising that bitcoin is benefiting from dollar weakness.

Since the beginning of the year, bitcoin has risen over 30 percent, benefiting from more crypto-friendly policies under President Donald Trump’s administration and increased institutional interest in digital assets.

Gold prices at record levels

Published 29 September 2025
– By Editorial Staff
Experts worry about the soaring price of gold.
1 minute read

During the summer and fall of this year, gold prices have risen by over 40 percent, leading to trading near $3,800 per ounce. The sharp increase has raised concerns among economists and investors.

One of the primary factors behind the price increase is US President Donald Trump’s policy, which aims to reduce America’s national debt. As part of this strategy, Trump hopes to weaken the dollar, making gold more attractive as a safe haven asset.

A weaker dollar makes gold cheaper for investors in other currencies, further driving up demand. Currently, one US dollar costs approximately €0.85, which represents a notable depreciation in just a few months.

Several major banks have raised their forecasts for gold prices. Goldman Sachs predicts that prices could rise to over $4,000 per ounce within a year, provided that central banks continue buying gold and investors increase their gold positions.

Despite the positive development, there are also warnings. Experts point out that gold prices can become volatile and that a sudden interest rate hike or improved global economic stability could lead to a rapid price decline.

Investors are therefore advised to be cautious and not put all their assets in gold.

The rapid price increase in gold reflects a world in economic uncertainty, where pressure on US finances and its currency policy could have far-reaching consequences worldwide.

China plans fully AI-controlled economy by 2035

The modern China

Published 26 September 2025
– By Editorial Staff
By 2035, AI is planned to have "completely reworked Chinese society" and implemented a new phase of economic and social production.
2 minute read

The Chinese government has presented an ambitious ten-year plan where artificial intelligence will permeate all sectors of society by 2035 and become the “main engine for economic growth”.

China’s State Council has published a comprehensive plan aimed at making the country the world’s first fully AI-driven economy within eleven years. According to the government document presented at the end of August, artificial intelligence will have transformed Chinese society by 2035 and become the foundation for what is described as “a new phase of development in intelligent economy and intelligent society”.

The plan, which spans ten years, encompasses six central societal sectors that will be permeated by AI technology by 2027. These include science and technology, citizen welfare, industrial development, consumer goods, governance, and international relations.

The goal: 90 percent usage by 2030

According to the timeline, AI technology should reach a 90 percent usage rate by 2030 and practically become a new type of infrastructure. At this point, the technology is expected to have developed into a “significant growth engine for China’s economy”.

The strategy resembles the country’s previous “internet plus” initiative, which successfully integrated the internet as a central component in the Chinese economy.

By 2035, AI should according to the plan have “completely reworked Chinese society” and implemented a new phase of economic and social production. This is an ambitious goal with significant consequences, not only for the People’s Republic but for the entire world.

International cooperation in focus

The State Council emphasizes that AI should be treated as an “international public good that benefits humanity”. The plan highlights the importance of developing open source AI, supporting developing countries in building their own technology sectors, and the UN’s role as a leader in AI regulation.

Although China’s AI industry is growing rapidly, as exemplified by the open AI platform DeepSeek’s successes earlier this year, Chinese models still lag several months behind their American counterparts in terms of average performance. This is largely due to restrictions and barriers that Western countries have imposed.

However, the gap is steadily narrowing. At the end of 2023, American AI models performed better than Chinese ones in 13 percent of general reasoning tests. By the same time in 2024, this figure had dropped to 8.1 percent. In certain AI applications, China is already a world leader and has invested heavily in offering its services at low prices and in many cases completely free as open source.

The State Council’s ten-year plan aims to further reduce the lead by strengthening key areas such as fundamental model performance, security measures, data access, and energy management.

Whether Beijing can deliver on its massive goals with the help of sometimes unreliable technology remains to be seen. However, if other nationally coordinated plans are any indication, the country may face a comprehensive transformation.

Chinese EVs outsell Tesla

Published 26 September 2025
– By Editorial Staff
From unchallenged market leader to pressured giant – Tesla faces intensifying competition from China.
1 minute read

Chinese electric vehicle company BYD has increased its sales in Europe by over 200 percent. Meanwhile, Tesla’s electric vehicle sales in Europe decreased compared to last year.

For the eighth consecutive month, sales are declining for Elon Musk’s electric vehicle company Tesla in Europe, according to industry organization ACEA. In July, Tesla sold a total of 8,220 electric vehicles, which is 36 percent less than the same month last year.

Meanwhile, Chinese electric vehicle manufacturer BYD, which stands for Build Your Dreams, sold 9,130 electric vehicles in July, representing an increase of 201 percent compared to July last year.

Looking at this year’s figures, Tesla has lost 43 percent in the European market, while BYD has increased by 244 percent.

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