STORY: Chinese officials and automakers are eyeing German factories slated for closure.
According to a person with knowledge of Chinese government thinking, there's a particular interest in Volkswagen's sites.
Buying a factory could allow China to build influence in Germany's prized auto industry.
Chinese companies have invested across a range of industries in Europe's biggest economy, from telecommunications to robotics.
But it's yet to set up traditional car manufacturing there, despite Mercedes-Benz having two large Chinese shareholders.
Any such move could mark China's most politically sensitive investment yet.
VW has long been a symbol of Germany's industrial prowess, now threatened by a global economic slowdown hitting demand and a creaking transition to green technologies.
Building cars in Germany for sale in Europe would allow China's EV makers to avoid paying EU tariffs on electric cars imported from China.
The source added that investment decisions would hinge on the new German government's stance towards China following an election in February.
VW is exploring alternative uses for its Dresden and Osnabrueck factories under a cost-cutting drive to pare back its German operations.