German firms amplify innovation-focused investments

HEFEI — At BSH Home Appliances Group's dishwasher factory in Chuzhou, Anhui province in East China, fully automated AGV (automated guided vehicle) robots shuttle components along precise routes, while AI-powered quality inspection systems detect microscopic flaws at high speed. A large screen displays real-time production status with colored dots — a vivid symbol of intelligence and innovation that defines this facility.

Established in 1995, BSH Home Appliances has continuously expanded investments in China, with its Chuzhou base now the group's largest global production site by area.

"China is not only a big market, but also a showcase for innovations," said Oliver Giersberg, senior vice-president and chief operating officer of BSH Home Appliances Greater China, in an exclusive interview with Xinhua News Agency.

As one of the earliest foreign appliance manufacturers to enter China, BSH, owner of brands like Siemens and Bosch, has evolved over 30 years from pure production to integrated research, manufacturing and sales.

Giersberg highlighted the synergy: "The advantages of China are definitely lying in digitization, while Germany's strength is the topic of engineering. It is like two hands holding firm, and you have to take the best. That is the core of the collaboration."

This complementary approach drives BSH's local upgrades, reflecting a broader shift among German multinationals.

Similarly, Volkswagen Group recently inaugurated its first full-process R&D base outside Germany in Anhui, featuring comprehensive testing facilities. This center enables end-to-end development, from software to vehicle validation, slashing new model development cycles in China to 24-30 months.

China's experience is empowering Volkswagen's global growth, said Ralf Brandstaetter, chairman and CEO of Volkswagen Group China, adding that European development cycles have accelerated from 48 to 30-36 months, driven by insights from China.

Other German giants are amplifying innovation-focused investments. BMW China deepened its local AI ecosystem by integrating DeepSeek, while Porsche launched its first strategic overseas R&D center in Shanghai. The Sino-German Standardization Cooperation Innovation Center in Frankfurt has commenced operations, fostering standardized outcomes in smart manufacturing.

These moves underscore China's transition from a sales destination to a co-creation hub.

A 2025/26 business confidence survey released by the German Chamber of Commerce in China shows that the proportion of respondent enterprises believing Chinese companies will take a leadership role in industry innovation has reached a record high of 60 percent. Additionally, 56 percent of respondent enterprises plan to deepen cooperation with Chinese partners further.

From January to September, China-Germany trade hit 185.9 billion euros ($217.83 billion), up 0.6 percent year-on-year, reaffirming China as Germany's top trading partner.

China is evolving from a vast market to an innovation center and is now a global application field for innovation, experts said, adding that by leveraging complementary strengths, German firms and Chinese partners jointly enrich global supply chains, turning collaboration into a catalyst for upgrading.

Xinhua - China Daily