German firms plan to invest more in China

Over half of German enterprises surveyed plan to increase their investments in China within the next two years, according to a report issued at a three-day forum for Sino-German industrial cooperation and development that ended on Tuesday in Beijing.

Titled "2025 China-Germany Hidden Champions Open Cooperation Report", the document was released during the China-Germany (China-Europe) Hidden Champions Forum 2025.

It also reveals that German and European hidden champions still have more than double the current growth potential in the Chinese market.

The report was jointly released by the International Cooperation Center of the National Development and Reform Commission and the DEZ German European Centre for SME Cooperation in China. The forum attracted over 600 participants from China and abroad, with the number of international attendees nearly doubling year-on-year.

Hidden champions refer to highly successful yet lesser-known small and medium-sized enterprises that are global leaders in terms of market share in their respective niches.

Peng Jian, an expert with the ICC, said the distinctive Sino-German industrial parks in China have fostered a thriving ecosystem for German companies, creating a synergistic development model that complements industrial and supply chain strengths of Chinese and German enterprises. Notably, 36 percent of surveyed firms expressed intentions to accelerate research and development and innovation activities in China.

Hans-Peter Friedrich, former vice-president of the German Bundestag and chairman of the German-Chinese Parliamentary Group, said that not investing in China means missing out on prime access to Asia's vast regional market.

Xinhua - China Daily