In recent years, the trade relationship between China and Germany has flourished, showcasing a profound engagement that reflects the growing economic collaboration between the two nationsNotably, statistics from the German Central Bank highlight that, in the first half of 2024, German investments in China reached an all-time high of 7.3 billion eurosThis robust figure underlines the trust that German businesses place in the Chinese market, reinforcing the ties that underpin their economic partnership.

The trend of expanding investments is not just a number on paperSeveral large German corporations have voiced their intent to deepen their operations in China this year, thus casting a significant "vote of confidence" in China's vibrant economyFor instance, in March, a joint venture formed by Mercedes-Benz and BMW established its headquarters in BeijingThis ambitious project aims to construct at least 1,000 cutting-edge supercharging stations across China by the end of 2026, boasting around 7,000 supercharging piles

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Meanwhile, Volkswagen announced a monumental 2.5 billion euro investment in April to enhance its production base and innovation center in Hefei, Anhui provinceBayer has also made headlines by declaring plans to build a health consumer goods supply center in Qidong, Jiangsu province, projected to begin operations in 2028, with an initial investment of 600 million yuan.

The ongoing VIII China-Germany Automobile Conference held in Munich recently brought together nearly 400 guests from the political, automotive, and business sectors of both nationsThe conference served as a dynamic platform for discussing the future directions and cooperative opportunities within the global auto industry, especially in the context of green, low-carbon, and smart technologiesParticipants expressed their optimism regarding China's economic potential and the investment landscape, advocating for sustained deepening of economic cooperation between China and Germany

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They also encouraged a rational approach from the European Union concerning automotive partnerships with China.

Chinese Ambassador to Germany, Zhang Jian, outlined that the economic and trade collaboration has thrived since diplomatic relations were established over fifty years agoThe automotive sector has always been a prominent element in the bilateral relationship, and Zhang emphasized the necessity for future innovation partnerships, particularly in autonomous driving and smart connectivityHe pointed out the interconnectedness of industrial and supply chains between both countries, expressing hopes that German firms would continue to participate actively in China's ongoing development.

On the other hand, Yu Guangsheng, Deputy Director-General of the Investment Promotion Bureau at China’s Ministry of Commerce, referenced the rich history of collaboration in the automotive industry spanning four decades

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He described how this partnership has cultivated a level of integration characterized by mutual dependence, supporting industry players—especially small and medium-sized enterprises—in accessing vital information and discussing investment opportunities effectively through platforms like the China-Germany Automotive Conference.

German attendees echoed a sentiment of optimism about the vast potential for cooperation in the automotive sectorAccording to Weidmann, the Director of International Affairs from the Ministry of Economic Affairs in Bavaria, the state has maintained a longstanding cooperative relationship with China, with automotive collaboration reaching significant depthsHe underscored the critical role that both countries play in the transformation of the global automotive industry, expressing confidence that their joint efforts can effectively address various challenges

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Responding to the recent EU tariff imposition on Chinese electric vehicles, he stressed the importance of constructive dialogue between the EU and China to find practical solutions that benefit both sides.

Ferdinand Dudenhöffer, a prominent automotive economic expert and director of the Bochum Automotive Institute, articulated that while German and European companies excel in manufacturing, brand building, and international expansion, Chinese enterprises are at the forefront of technological advancements in future vehiclesThe blending of expertise from both sides, he believes, can create a win-win scenario for the automotive industry moving forward.

Moreover, the relationship between China and Germany has consistently demonstrated resilience and growth across various fields, cementing cooperation in technology, manufacturing, and tradeParticularly noteworthy is Bavaria's proactive role in local partnerships, having fostered significant ties with provinces like Sichuan, Shandong, and Guangdong, contributing to the broader China-Germany relationship.

To bolster local cooperation and promote investments, a recent event co-hosted by the Chinese Consulate in Munich and the city of Ingolstadt—the tenth Bavaria-China Day—sought to enhance bilateral economic interactions

Lin Kai, the acting consul general of the Chinese consulate, emphasized the enduring friendship between Bavaria and China, recognizing Bavaria's leadership in advancing local tiesHe noted that China has become Bavaria's most significant trade partner for several consecutive years, with trade volume with China comprising over one-tenth of the state's overall foreign trade.

Numerous German political figures expressed their enthusiasm for driving closer engagements between Bavaria and China, particularly in promising fields such as hydrogen energy, artificial intelligence, and electric vehiclesThey encouraged enterprises from both countries to pursue reciprocal investments and deepen collaboration.

State Secretary Gotthardt from Bavaria’s Ministry of Economic Affairs reinforced the notion that the region's robust economic development relies heavily on the opportunities presented by the Chinese market