Volkswagen has adopted a relatively quick approach to entrenching itself in China, the world’s largest market for electric vehicles. Rather than setting camp in China and building local manufacturing facilities such as Tesla did, Volkswagen has opted to invest in Chinese automaker XPeng gain a foothold in the eastern Asian market.

The German carmaker will invest $700 million in Guangzhou, Guangdong-based EV maker Xpeng, a “shortcut” that will grant the company access to…

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