Survey: German firms to invest more in China

SHANGHAI: Nearly 80% of German companies that have a presence in China plan to continue with their investments in the country, considering it essential for maintaining competitiveness both in the Chinese market and globally, a survey published on Wednesday by the German Chamber of Commerce in China shows.

According to the survey, 5% of the respondents currently regard Chinese companies as innovation leaders in their respective industries, while 46% foresee them becoming leaders within the next five years.

The survey was conducted between Feb 22 and March 6, with responses from 150 member companies of the chamber, which has more than 2,100 members, including Siemens, Mercedes-Benz Group, Covestro and Bayer Group.

German companies aim to leverage China’s innovation system not only to seize growth opportunities but also to maintain their competitive edge, said Maximilian Butek, East China executive director of the German Chamber of Commerce in China.

Noting that Chinese and German companies are increasingly becoming close competitors both in the Chinese and global markets, Butek said this is the reality that German companies must prepare for. They have to strengthen their competitiveness by increasing investment in their China businesses and cooperation with partners and customer services, he said.

China offers substantial opportunities for progress in sectors such as electric vehicle batteries and autonomous driving. This is why German companies are eager to deepen their market presence in the country, Butek added.

Such sentiments are in line with the latest data. German investment in China surged 19.8% year-on-year in the first two months of this year, statistics from the Commerce Ministry showed.

Highlighting China’s big market, efficient supply chains and growing innovation prowess, Anna An, president for China unit at Henkel AG & Co, a German industrial and consumer goods manufacturer, said that China’s pursuit of green development has created numerous growth points for German companies including Henkel.

She said the group anticipates additional government measures to further boost consumption in the country in the coming years.

Henkel established a research and development centre for its consumer business in Shanghai in January.

Last year, it invested 900 million yuan to build an adhesive plant in Yantai, Shandong province, to meet the growing demands of a diverse range of industries, from electronics and automotive to aerospace.

Ling Ji, vice-minister of commerce and China’s deputy international trade representative, said that German companies have ample opportunities to leverage the expansion of China’s digital economy and green transformation.

He made the remark while meeting last week with senior executives of German companies, including BMW Group and Infineon Technologies in Munich. — China Daily/ANN