Cooperation between Chinese and German small and medium-sized enterprises was the focus of a recent promotional and matchmaking conference in Berlin, with companies from Suzhou in East China's Jiangsu province given particular prominence.

Hosted by the Suzhou Municipal Development and Reform Commission, the conference was held on the sidelines of Future Day for SMEs 2026 at STATION-Berlin. Now in its fourth edition and said to be the largest to date, the Future Day for SMEs this year brought together more than 8,000 companies globally to discuss innovation and the future of small and medium-sized enterprises.

Suzhou has become a major hub for German investment in China, hosting nearly 800 German companies.

Within Suzhou, Taicang, a county-level city in Suzhou, stands out as a key base for Sino-German cooperation, hosting more than 560 German companies, including over 60 hidden champions, and earning the nickname of "hometown of German enterprises" .

Hidden champions refer to highly successful yet lesser-known SMEs that are global leaders in terms of market share in their respective niches.

Party Secretary of Taicang Chen Gao said Taicang's success in working with German businesses is underpinned by three factors: its strategic location, a strong business environment, and a well-developed support ecosystem.

"German companies setting up in Taicang can benefit from comprehensive, end-to-end support," he noted. For example, the city has developed more than one million square meters of ready-to-use industrial space for German SMEs. It has also established tailored legal and public service mechanisms, including coordinated judicial support and dedicated police services for foreign enterprises.

For everyday needs, Taicang has introduced an integrated service card for foreign residents, covering payments, accommodation, and transport, Chen said.

Rudolf Scharping, former chair of the Social Democratic Party of Germany and former German defense minister, echoed the sentiment that Taicang has created a "favorable" environment for German enterprises. "The service is comprehensive in the sense that it not only talks about businesses, but also about the people who do business there, about the living environment, educational skills, and so on."

Despite rising narratives in recent years about intensifying economic competition between China and Germany, German companies in Taicang have generally maintained an upward trajectory, said Zhang Zhenwei, who worked for automotive manufacturer Kern-Liebers, the first German-invested enterprise in Taicang, and currently serving as chairman of the Board of Taicang Roundtable, a group of more than 100 largely German businesses.

"I believe there is still significant room for cooperation between the two sides," Zhang said. "If we can make the most of each side's strengths, we can not only establish a solid footing in the Chinese market but also expand into other markets, including Southeast Asia and Europe."

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