Volkswagen’s management has expressed cautious optimism that a dispute between foreign carmakers and China’s government over the protection of proprietary electric vehicle technology is heading towards resolution.

Jochem Heizmann, chief executive of Volkswagen China, said on Tuesday in Shanghai that recent comments by senior Chinese officials that foreign carmakers are not required to share sensitive technology with local partners suggested things are “going in the right direction”.

He was referring to a statement last month by Miao Wei, minister of industry and information technology, that the notion foreign companies would have to transfer technology to Chinese companies was a “misunderstanding”, and that it was “not mandatory for foreign-funded enterprises to transfer technology to China”.