Chinese officials and automakers are eyeing German factories slated for closure and are particularly interested in Volkswagen's sites , a person with knowledge of Chinese government thinking told Reuters.

A new report claims Chinese carmakers are interested in buying Volkswagen's factories in Germany, but this could be only a pipe dream of a company in distress

Chinese officials are showing strong interest in Germany's automotive sector, particularly in acquiring factories from established manufacturers like Volkswagen (OTCPK:VLKAF). The strategic move is aimed at enhancing China's influence in Germany's car industry and circumventing European Union tariffs on imported electric vehicles.

Volkswagen is exploring alternative uses for its Dresden and Osnabrueck factories under a cost-cutting drive to pare back its German operations. Europe's biggest automaker, which owns brands including Porsche, Audi and Skoda, has seen sales fall amid rising competition from Chinese companies.