BMW i3 electric cars are pictured during the inauguration ceremony of Plant Lydia of BMW Brilliance Automotive (BBA) in Tiexi District of Shenyang, northeast China's Liaoning Province, June 23, 2022. [Photo/Xinhua]

In January, German company Beumer Group settled in Taicang, Jiangsu Province, marking the arrival of the 500th German enterprise in this eastern Chinese city.

At the inauguration ceremony held in the German state of North Rhine-Westphalia, Beumer CEO Rudolf Hausladen said the company has conducted very positive dialogues with Taicang and the local government is always responsive to their needs and supportive. "We are full of expectations for our development in the Chinese market, which possesses many growth opportunities," said Hausladen.

The strip and wire provider Kern-Liebers, one of the first German businesses settled in Taicang, recalled its entry in 1993 with an investment of 500,000 German marks, only six employees, and a 400-square-meter factory house. Now it possesses 70,000 square meters of factories with an annual output value of 1.5 billion yuan (about 207.3 million U.S. dollars), accounting for the largest proportion of its global footprint.

Thirty-one years on, the Chinese "hometown of German enterprises" has growingly been the epitome of the economic and trade cooperation between China and Germany, witnessing a more open Chinese market sharing development dividends with the world.

Joining hands

A report from the German Economic Institute shows that the total direct investment by German companies in China reached a record high of 11.9 billion euros (about 12.7 billion U.S. dollars) in 2023, a year-on-year increase of 4.3 percent. The value accounted for over 10 percent of Germany's total overseas investment, the highest level since 2014.

More than 5,000 German enterprises have taken root in China and the Chinese market is of great significance to them, said Maximilian Butek, chief representative of the Delegation of German Industry and Commerce Shanghai.

Taicang is home to one-tenth of German companies in China, whose investments, totally valued at 6 billion U.S. dollars, account for almost half of all foreign capital in the city. High-tech enterprises in the fields of automotive core parts, industrial aircraft, as well as aerospace are the main industries deployed in Taicang.

Chiron Group, a century-old German machine tool manufacturer, invested and founded its sales office in Taicang in 2012, and has localized its entire value chain, ranging from production and research and development to sales and services. In the past decade, the company's business volume has quadrupled.

The diverse services and a supportive business environment provided by the local government have helped foreign companies develop in China, said Willi Riester, chief technology officer of Chiron Machine Tool (Taicang) Co., Ltd. "We have a big trust in China and especially in Taicang to continue our business. Our forecast looks quite stable for 2024; we want to have around 20 to 30 percent growth," he said.

The average return on investments made by foreign companies in China is about 9 percent, a relatively high level across the globe. Therefore, China continues to be particularly attractive to foreign investment, said Huang Shouhong, director of the Research Office of China's State Council.

German sportswear manufacturer Adidas saw a full-year revenue in Greater China of 3.19 billion euros in 2023, up 8.2 percent compared to a year earlier, according to its latest financial report.

Bjorn Gulden, CEO of Adidas, believes that China will steadily play an important strategic role in the future global development of the company, noting that "needless to say, China is a very important market for us where we hope that we will grow, take market share and be successful."

Tight bonds

This year marks the 10th anniversary of the China-Germany comprehensive strategic partnership. Federal Chancellor of Germany Olaf Scholz is paying his second official visit to China since taking office. He arrived in southwestern Chongqing Municipality to kick off the three-day visit on Sunday.

Bilateral trade volume stood at 253.1 billion euros in 2023, in which China maintained its position as Germany's leading trading partner for the eighth consecutive year.

Europe's largest economy has also been the foremost trading partner of the world's second-largest economy within the European Union for years. In 2022, China surpassed Japan to claim the title of Germany's largest trading partner in Asia.

The German city of Duisburg, once reliant on coal and steel for prosperity, has now emerged as a key gateway for trade with Asia.

This year marks the 10th anniversary of Duisburg's inauguration of the China-Europe freight train services, which, as one of the most representative projects of the China-proposed Belt and Road Initiative, have remained a cornerstone of economic collaboration and cultural exchanges between the two countries.

Statistics from the Consulate General of China in Dusseldorf show that the past decade has witnessed the launch of 85,000 China-Europe freight trains, serving 219 cities across 25 European countries. In 2023 alone, a total of 382 China-Europe freight trains made their journey westward to Duisburg, with 117 returning eastward.

Soren Link, mayor of Duisburg, said that the demand for logistics between China and Europe is still high, and Duisburg is willing to maintain and strengthen ties with China while endeavoring to foster greater connectivity between the two sides.

Bright prospects

Butek sees Scholz's visit as a chance for open and honest discussions between Germany and China to pave the way for strengthened mutual trust between the two sides. He said investment by German companies will bring momentum to the Chinese economy, while China's further openness will allow German businesses to engage in and reap the rewards of the country's high-quality endeavors to boost economic development.

A recent business confidence survey released by the German Chamber of Commerce in China reveals confidence in the prospects of Sino-German economic and trade cooperation. Among the 566 member companies surveyed, 91 percent expressed their intentions to continue their operations in China, and more than half said they plan to increase investments in the Chinese market.

Large German companies continue to regard China as a burgeoning market and intend to expand their presence there, aiming to mitigate the risks associated with escalating global trade tensions, said Jurgen Matthes, an expert at the German Economic Institute.

The automotive industry, especially the emerging new energy vehicle (NEV) industry, is one prime example of successful collaboration between the two sides.

The German carmaker BMW Group said it is accelerating the layout in the NEV field and has invested some 105 billion yuan (14.5 billion U.S. dollars) in the northeastern Chinese Shenyang base, one of its biggest production bases and most important NEV centers globally, since 2010. For its part, Mercedes-Benz said its passenger car sales in the Chinese market last year accounted for more than 35 percent of its global sales.

On April 10, Volkswagen Group announced that it saw the deliveries in the first quarter of this year rise by 3 percent to 2.10 million vehicles, with China being one of the main growth drivers. Among them, the group's NEV deliveries increase by 91.2 percent year on year in the Chinese market.

Later, Volkswagen Group China announced an investment of 2.5 billion euros for its innovation hub expansion in the eastern Chinese city of Hefei to increase the pace of innovation in the country and the production of its new NEVs.

During an interview with Xinhua last year, Volkswagen Group CEO Oliver Blume said cooperation with China upholds Volkswagen's business all around the world and "makes the company even stronger."

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