The Economist.
40 years ago, the first Volkswagens rolled off the assembly line in China.
Within a decade, the VW Santana became the must-have motor for the country's emerging middle class.
And Audi, VW's luxury arm, became the official provider of limousines for China's Communist Party.
But in 2013, the contract for government cars was given to Hongqi or Red Flag, a Mao-era marque revived for a new age.
It was a sign of things to come.
By 2019, VW sales in China were in decline and just two years later,
homegrown electric vehicle giant BYD dethroned Volkswagen as China's favorite brand.
The gibe was German foreign policy towards China needs to be more than mere after sales management to our car industry.
And there is some truth to that.
Politician Johannes Vogel is one of a growing number of voices in Germany calling for it to rethink its approach to China,
before Chinese competition hollows out the industrial heartland that made Germany rich.
But as German Vice Chancellor Lars Klingbeil meets officials in Beijing this week, it's not just cars on the agenda.
Across industries, Western governments and businesses are facing a new China shock.
As Chinese AI surges ahead, its stranglehold on rare earths tightens, and its exports continue to flood rich markets.
I'm Jeremy Page, The Economist's Chief China Correspondent in Taipei
and today I'm joined by our Geopolitics Editor and former Drum Tower host, David Rennie in London.
And we're asking, could Germany's big bet on China be about to turn into a costly mistake?
This is Drum Tower from The Economist.
David, hello! Fantastic to have you back on the show. How have you been?