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"China is currently the role model for renewing vitality in automotive markets around the world and it will stabilize Volkswagen Group's business while operations in Europe are still slowly coming back," said Woellenstein.

"But the downturn was so big – the hole that was dug was so deep – that it will still take probably at least a couple of years to dig ourselves out."

"China is a strategically relevant market for the development and application of fuel cells," said Wang Weiliang, regional president of Bosch Powertrain Solutions China.

"China deems breaking through key technology as a significant strategy. So far, Chinese enterprises have solved some problems in key components," the report said.

"China has quickly vowed to retaliate and if such an escalation does materialize, it would have significant economic impact on China, the US and the rest of the world, at a sensitive time for the global economy," it said.