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Nation's market seen as magnet for German firms

By REN QI | chinadaily.com.cn | Updated: 2026-04-19 23:58
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The resilience of the Chinese economy provides a rare sense of certainty in a volatile world, which is why foreign investors continue to express confidence in its bright prospects, experts said.

This optimism is strongly backed by the country's qualitative economic transition and robust market magnetism. According to the Ministry of Commerce, 8,631 new foreign-invested enterprises were established in China in the first two months of 2026, marking a 14 percent year-on-year increase.

The actual use of foreign capital reached 161.45 billion yuan ($23.68 billion) during this period. Notably, foreign direct investment in China's high-tech industries surged 20.4 percent year-on-year to 63.21 billion yuan in the first two months of this year, accounting for 39.2 percent of total inflows.

The enduring appeal of the Chinese market has been particularly evident in the comprehensive strategic partnership between China and Germany, the world's second- and third-largest economies.

"The 15th Five-Year Plan (2026-30) sets out crucial goals, including further adhering to reform and opening-up, expanding external cooperation and boosting domestic demand. These clear directions have generated a sustained and strong appeal to the German business community," said Cui Hongjian, a professor at Beijing Foreign Studies University.

Data from the Federal Statistical Office of Germany showed that bilateral trade reached 251.8 billion euros ($295.9 billion) in 2025, allowing China to reclaim its position as Germany's most important trading partner. Meanwhile, China's General Administration of Customs reported 5.2 percent growth in Sino-German trade, which reached 1.51 trillion yuan last year.

Against this backdrop, German multinational corporations are actively expanding their footprints in China, and this enthusiasm was palpable at the recent 18th Taicang Day economic exchange event in Munich.

Addressing the event, Ansgar Hinz, chairman and CEO of the German sci-tech organization VDE Group, said, "Establishing our only Chinese representative office in Taicang, Jiangsu province, demonstrates our full trust in the local investment environment and our firm optimism about the immense potential of the Chinese market."

Other foreign officials echoed this sentiment. Gudrun Weidmann, director for internationalization at Germany's Bavarian Ministry of Economic Affairs, emphasized that given the current global challenges, international partnerships and mutual trust are becoming increasingly important, and Bavaria is willing to be a trusted innovation partner with China.

The continuous influx of German capital is vividly reflected in Taicang, a city known as the "hometown of German enterprises". The region's magnetic pull has resulted in an astonishing pace of growth. While it took 14 years to attract the first 100 German companies, the leap from the 400th to the 500th took merely two years.

Today, over 90 percent of early-settled German enterprises in Taicang are witnessing fresh capital injection. For instance, automotive manufacturer Kern-Liebers, the first German-invested enterprise in Taicang, recently invested an additional $20 million into its operations in China, while Schaeffler Group, the world's second-largest rolling bearing manufacturer, announced a 1 billion yuan investment for a humanoid robot factory.

As China enters the 15th Five-Year Plan period, the door of opening-up will only open wider, which will surely usher in a broader space for Sino-German cooperation, said Chen Gao, Party secretary of Taicang.

Chen noted that the city will build a Sino-German industrial cooperation demonstration zone with high standards and continue to serve as a bridge for the steady and long-term development of bilateral relations.

Zhai Qian, minister of economic and commercial affairs at the Chinese embassy in Germany, noted that history has proved that cooperation is the optimal solution to risks, and development is the mandatory option for security.

The healthy and stable development of Sino-German ties and the continuous deepening of pragmatic economic and trade cooperation will inject momentum into global economic development, he added.

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