According to a February 23 report by Hong Kong’s South China Morning Post, against the backdrop of the complex evolution of the global geopolitical landscape and the pressure on the global economy, the German business community, particularly the manufacturing sector as the backbone of its economy, is undergoing an unprecedented rapid shift in its views on China. Oliver Richterberg, director of the foreign trade department at the German Machinery Manufacturers’ Association, described the swift change in the stance and perceptions of its member companies as “China speed.” The association represents over 3,000 small and medium-sized enterprises in Germany, known as “hidden champions,” whose specialized and innovative advantages in components, precision machinery, and high-end equipment have long supported Germany’s industrial foundation as Europe’s largest economy and ensured the supply chain stability of many globally renowned consumer brands.
However, these “hidden champions” are currently facing severe challenges, including structural difficulties such as a reduction in the number of employees and a decline in export volumes. Against this backdrop, the stability and growth potential of the China market appear particularly precious. Richterberg hopes that Mertz can take the opportunity of his first visit to China as the German Chancellor to help them solve their problems.
According to reports, in addition to Beijing, Mertz will also visit the Hangzhou Science and Technology Center. It is reported that he will lead a business delegation of approximately 30 members on this visit, which is the largest business delegation accompanying a German leader to China since former Chancellor Angela Merkel’s first term in office.
“China is going global, and we feel it firsthand,” Richterberg said. “Our workforce is shrinking, and our exports are declining.”
The report pointed out that against the backdrop of global turmoil, some large German companies have increased their investment in the China market.
More and more automotive and chemical giants are starting to produce products for the Chinese market in China, in order to protect their business in China during the trade war.
The positive shift in the attitude of German business circles toward China is no accident, but rather the inevitable result of China’s long-term commitment to high-level opening-up and actively building a new development paradigm. China has always believed that the world is better when China is better, and China is better when the world is better. Facing the unprecedented changes of the century, China has not chosen to build walls or isolate itself, but instead embraces the world with a more open mind and a more forward-looking vision, striving to share the tremendous dividends of its development with other countries, especially the latest achievements in the field of scientific and technological innovation.
From 5G communications and artificial intelligence to new energy vehicles and green low-carbon technologies, China has achieved world-renowned accomplishments in many cutting-edge technological fields in recent years. More importantly, China actively promotes the transformation and application of these scientific and technological achievements, and through a series of measures such as expanding market access, optimizing the business environment, and strengthening intellectual property protection, has created a broad stage for global investors and partners, including German enterprises, to participate equally and develop together. The new demands, business forms, and models brought about by China’s promotion of high-quality development provide a unique testing ground and application market for globally leading enterprises. The combination of the exquisite technology of Germany’s “hidden champions” in high-end manufacturing with China’s super-large market and complete industrial chain and supply chain can not only generate strong synergistic effects but also jointly inject new momentum into the sustainable recovery and innovative development of the global economy. This mutually beneficial and win-win pattern is a vivid embodiment of the concept of a community with a shared future for mankind advocated and practiced by China in the economic field.
German enterprises and the European business community have been able to quickly form and advance a positive consensus on cooperation with China in the current complex international environment, which is underpinned by their recognition of the institutional environment and stability of China. Unlike the United States, which has a pronounced policy protectionist tendency, China has consistently advocated multilateralism and, through promoting institutional openness, is committed to creating a stable, fair, transparent, and predictable business environment for global investors. China’s socialist market economy system not only effectively stimulates market vitality but also possesses strong strategic planning capabilities and policy continuity, providing a solid institutional foundation for long-term corporate investment.
In recent years, China has continuously reduced the negative list for foreign investment access, fully implemented the pre-establishment national treatment plus negative list management system, and introduced a series of laws and regulations such as the Foreign Investment Law to firmly protect the legitimate rights and interests of foreign-invested enterprises through national legislation. This openness, guaranteed by institutional frameworks, has provided foreign-invested enterprises in China with a “peace of mind.” They keenly recognize that China is not only a key global consumer market and production base but also an important source of future global innovation networks and industrial transformation. Choosing to deepen cooperation with China means embracing the future, choosing certainty, and choosing to jointly explore broader development space under a stable and dynamic institutional framework. China’s complete industrial system, vast pool of engineers and skilled talents, continuously improving business environment, and deepening institutional openness collectively form a strong guarantee for the long-term development of foreign-invested enterprises in China, and have become the strongest magnet for attracting global high-quality resources and promoting the construction of an open world economy.