"The world's first factory built by Covestro in Shanghai to achieve large-scale production of mechanical recycling polycarbonate plastics was put into operation last year, with an annual production capacity of 25,000 tons. Germany is a leader in circular economy technology, and China has many application scenarios."
Lei Huanli, the President of Covestro China, has expressed this view previously and repeated it again in a meeting with German Chancellor Olaf Scholz.
"I felt that he is very interested," Lei said.
As a leading global German materials company, Covestro has established the world's largest integrated production base and Asia Pacific Innovation Centre in Shanghai. At the end of 2023, Covestro's cumulative investment in the Chinese market exceeded 4 billion EUR. "The Chinese market contributes 20% of Covestro's global sales, and these numbers already tell us that the Chinese market cannot be ignored," said Lei.
What is the scale of the Chinese market in the eyes of German executives?
On April 14th, a meeting was held at the Yuzhou Hotel in Chongqing, bringing together leaders of more than 10 leading companies, including Siemens, Bayer, Mercedes-Benz, BMW, Zeiss, and relevant parties from Chongqing. As a heavyweight economic delegation accompanying German Chancellor Olaf Scholz on his visit to China, these German executives were exchanging ideas on practical cooperation in areas such as green sustainable development and technology manufacturing in the future in China.
"Investing here not only opens up the market for us, but also has the opportunity to bring more new products to Chinese consumers." BASF Group's Chairman of the Executive Board, Dr. Markus Kamieth, said he looks forward to working together with China to build a green industry base.
"China is a country full of opportunities," said Tobias Meyer, CEO of DHL Group. Chinese large companies have a wide global layout and will have 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 deep cooperation with local business partners in China," said Belén Garijo, Chair of the Executive Board and CEO of Merck Group, she looked forward to more large-scale investments in China in the future.
The arrival of German executives was a vote of trust for the Chinese market and cooperation with China.
The industrial and supply chains of China and Germany are deeply intertwined, and the markets are highly dependent. Economic and trade cooperation has always been the cornerstone of Sino-German relations.
A representative from the Ministry of Commerce stated that 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. German investment in China accounts for one-third of the EU's investment in China.
According to a report from the German Institute of Economics, Germany's total direct investment in China reached a historical high in 2023, reaching 11.9 billion EUR, a year-on-year increase of 4.3%. During the same period, German investment in China accounted for 10.3% of German total overseas investment, the highest level since 2014.
More than 5,000 German companies are developing in China, and more than 2,000 Chinese companies are operating in Germany. This data demonstrates the close economic exchange between China and Germany over the years.
Currently, the world's century long changes are accelerating, and economic globalization is facing a backlash. Decoupling and breaking the chain will only amplify global economic and trade risks. The visit of German executives to China sent a clear signal: the more complex the international background, the more it can demonstrate the value of cooperation and win-win in the era.
"The world is facing many challenges, and no country can address them alone. German and Chinese companies should strengthen cooperation," said Siemens' Chairman of the Board, Roland Busch, during the meeting.
Are there more possibilities for German companies in the Chinese market?
Bosch Hydrogen Powertrain Systems in Chongqing was the first company visited by Olaf Scholz during his visit to China. The company is a Sino-German joint venture, committed to introducing leading hydrogen fuel cell solutions to the Chinese market. It has launched multiple hydrogen power products, including 76 kW, 134 kW, 190 kW, etc. The latest 300 kW product has also begun to be tested in customer vehicles.
"The importance of China lies not only in its consumer market, but also in its innovation center," said Dr. Stefan Hartung, Chairman of the board of management, Robert Bosch GmbH. China is leading the transformation in areas such as electrification, intelligent transportation, artificial intelligence, digitalization, and energy conservation. Bosch continues to invest in China, leveraging local talents and innovation to drive breakthroughs in emerging fields. "Our investments in Suzhou and Chongqing are good examples."
The development of China's digital economy and new opportunities for green transformation provide a broader new space for the deepening of Sino-German economic and trade relations.
In 2023, Siemens invested 1.1 billion CNY in new fixed assets investment to build a Chinese intelligent manufacturing base for Siemens industrial automation products in Chengdu. Bayer built the Yizhuang Open Innovation Center in Beijing and established creation platform in Shanghai and will also establish a new health consumer product innovation center in Shanghai this year.
"We will continue to invest in China and strengthen cooperation with our Chinese partners," Mercedes-Benz Group AG Chairman Ola K?llenius told the press. 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 pleased to announce the opening of the new Shanghai R&D center building this month, marking a new stage of development for Mercedes-Benz's local R&D in 'leading the global trend with Chinese innovation'."
The head of the German economic delegation, Franziska Brantner, is optimistic about China's economic prospects and is willing to continuously deepen Germany China economic and trade cooperation to promote mutual benefit and win-win outcomes.
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. German investment in China accounts for one-third of the EU's investment in China.
Germany's total direct investment in China reached a historical high in 2023, reaching 11.9 billion EUR, a year-on-year increase of 4.3%.
Xinhua News Agency, April 18, Beijing
Reporters: Tang Shining, Liu Enli, Zhou Rui
Photos: Chongqing International Logistics Hub Park, Chongqing Highway Transportation ASEAN International Logistics Co., Ltd.