Xinhua News Agency, Beijing, April 18th Title: Opportunities, Potential, Confidence - The Chinese Market in the Eyes of German Business Executives

Xinhua News Agency reporters Tang Shi Ning, Liu Enli, Zhou Rui

"The world's first factory built by Covestro in Shanghai to achieve large-scale production of mechanically recycled polycarbonate plastics was put into operation last year with an annual production capacity of 25,000 tons. Germany is leading in circular economy technology, and China has many application scenarios."

On the afternoon of April 16, when the reporter met Lei Huanli, President of Covestro China, in Qiantan, Shanghai, she told the reporter about this new progress. She also told the reporter that just one day ago, she also introduced this situation to German Chancellor Scholz who was visiting China.

"I can feel that he is very interested." Lei Huanli said.

As a world-leading German materials company, Covestro has built the world's largest integrated production base and Asia-Pacific Innovation Center in Shanghai. By the end of 2023, Covestro's cumulative investment in the Chinese market has exceeded 4 billion euros. "The Chinese market contributes 20% of Covestro's global sales. These figures have told us that the Chinese market cannot be ignored," Lei Huanli said.

What is the weight of the Chinese market in the eyes of German executives?

On April 14, a meeting was held at Chongqing Yuzhou Hotel, bringing together the heads of more than 10 well-known companies such as Siemens, Bayer, Mercedes-Benz, BMW, and Zeiss with relevant parties from Chongqing. As a heavyweight economic delegation accompanying German Chancellor Scholz to visit China, these German executives exchanged views on future pragmatic cooperation in China in the fields of green sustainable development and technological manufacturing.

"Investing here will not only open up the market for us, but also give us the opportunity to bring more new products to Chinese consumers." BASF Group's incoming chairman of the executive board, Kerry, said that he looks forward to working with China to build a green industrial base.

"China is a country full of opportunities." DHL Group CEO Mark McDowell believes that Chinese large companies have a wide global presence and there will be more opportunities to work together in the logistics field in the future.

"We have a history of more than 90 years of development in China, and have in-depth cooperation with relevant local business partners in China." said Ge Lihe, Chairman of the Board and CEO of Merck Group, Germany, looking forward to more large-scale investments in China in the future.

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The arrival of German executives is a vote of confidence in the Chinese market and cooperation with China. Reuters analyzed that this list of executives itself highlights the important position of China as Germany's largest trading partner.

The Chinese and German industrial chains and supply chains are deeply embedded, and the markets are highly dependent. Economic and trade cooperation has always been the "ballast stone" of Sino-German relations.

According to the relevant person in charge of the Ministry of Commerce, Germany is China's largest trading partner in Europe, and the trade volume between China and Germany accounts for one-third of the total trade volume between China and Europe, and Germany's investment in China accounts for one-third of the EU's investment in China.

The report of the German Institute for Economic Research shows that in 2023, the total amount of German direct investment in China reached a record high of 11.9 billion euros, a year-on-year increase of 4.3%. During the same period, Germany's investment in China accounted for 10.3% of Germany's total overseas investment, the highest level since 2014.

More than 5,000 German companies have developed in China, and more than 2,000 Chinese companies have been deeply rooted in Germany... You are in me, I am in you, these data have become a vivid testimony to the close economic exchanges between China and Germany over the years.

At present, the world's century-old changes are accelerating, economic globalization is encountering headwinds, and "decoupling and breaking the chain" will only amplify global economic and trade risks. This collective visit of German executives to China sends a clear signal: the more complex the international background, the more it can demonstrate the value of the era of win-win cooperation.

"The world faces many challenges, and no country can cope with them alone. German and Chinese companies should strengthen cooperation." Bo Leren, Chairman of the Board of Directors of Siemens, said during the talks.

For German companies, are there more possibilities in the Chinese market?

Bosch Hydrogen Power Systems (Chongqing) Co., Ltd. is the first company Scholz visited during his visit to China. This hydrogen power plant is a Sino-German joint venture, dedicated to introducing leading hydrogen fuel cell solutions to the Chinese market. It has launched a number of hydrogen power products such as 76 kW, 134 kW, and 190 kW. The latest 300 kW product has also begun to be tested on customer vehicles.

"The importance of China lies in the fact that it is not only a consumer market, but also an innovation center." Stefan Hartung, Chairman of the Board of Directors of Bosch Group, said recently that China is leading the transformation in the fields of electrification, smart travel, artificial intelligence, digitalization and energy conservation. Bosch continues to invest in China and promote breakthroughs in emerging fields with the help of local talents and innovation. "Our investment in Suzhou and Chongqing is a good example."

The new opportunities for the development of China's digital economy and green transformation provide a broader new space for the further deepening of China-Germany economic and trade relations.

In 2023, Siemens will invest 1.1 billion yuan in fixed assets to build the Siemens Industrial Automation Products China Intelligent Manufacturing Base in Chengdu; Bayer built the Yizhuang Open Innovation Center in Beijing last year and set up the Co.Lab co-creation platform in Shanghai. This year, it will also establish a new health consumer product innovation center in Shanghai...

"We will continue to invest in China and strengthen cooperation with Chinese partners." Mercedes-Benz Group Chairman of the Board of Directors Ola K?llenius told reporters that in the past two years, the Shanghai R&D Center, which focuses on digital innovation, has become the fastest growing team in its global R&D network. "We are very pleased to open the new building of the Shanghai R&D Center this month, which marks that Mercedes-Benz's local R&D has fully entered a new stage of development of "leading the global trend with Chinese innovation."

Brantner, head of the German economic delegation, said that he is optimistic about China's economic prospects and is willing to continuously deepen German-Chinese economic and trade cooperation and promote mutual benefit and win-win results.

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