Japanese carmakers Honda and Nissan are reportedly considering a merger — a sign that major global manufacturers are joining forces to compete against their mighty Chinese competitors as the auto world goes electric.

Among Japan’s automakers, Toyota has been the most vocal about the potential harm from a dramatic shift to EVs, with chairman Akio Toyoda warning in October that an EV-only future would lead to many job losses in the industry, especially at suppliers and those working on engines.

The merger talks between Honda and Nissan are the latest example of companies trying to respond to the competitive threat from China.