"We will shift more into China because of the situation in Europe," Diess said.
When asked about how the automaker would respond in the event that China attacked Taiwan, he said that he did not believe the country would take such a step.
"China has a high interest to keep borders open," Diess said. "We think it is an asset for us to be strong in China. China is a stronghold for us.
In light of rising instability in Europe, boosting sales in China is an even higher priority than before, Diess added.
VW currently has a 16 percent market share in China and aims to double battery-electric car sales in the country this year.