China Germany Cooperation Continuously Consolidates and Deepens

At the 2023 Munich International Auto Show, China became the country with the highest number of exhibitors after the host Germany, and the new products and technologies showcased by Chinese exhibitors attracted widespread attention. The picture shows visitors learning about the new energy vehicles of the Chinese automotive brand BYD. Photo by Leonhard Simon (Image of China)

German environmental design company Dizhiqi has partnered with China Tongfang Co., Ltd. to provide integrated heat pump heating solutions for the German public sector, large enterprises, and private households. This is one of the representative projects of deepening cooperation between China and Germany in the field of new energy. The picture shows German workers installing and debugging Chinese heat pump products. Photo by Xiao Jing from the European Center Branch of this newspaper

At the 2024 Hanover Industrial Expo in Germany, Chinese companies showcased industrial solutions such as intelligent manufacturing, clean environmental protection, and energy transformation, which received widespread attention and praise from international industry professionals. The picture shows a customer understanding product performance at a Chinese corporate exhibition booth. Photo by Xiao Jing from the European Center Branch of this newspaper

At the unveiling ceremony of BMW Brilliance's 6th millionth vehicle, the words "600000" flickered continuously on the electronic screen at the Dadong factory of BMW Brilliance Automotive Co., Ltd. in Shenyang, Liaoning Province. Photo by Xinhua News Agency reporter Pan Yulong

At the Analysis and Battery Technology Center of BASF Shanshan Battery Materials Co., Ltd. located in Changsha, Hunan, R&D personnel are testing the performance of battery cathode materials. Provided by BASF Shanshan Battery Materials Co., Ltd

Taicang Sino German Innovation Park, located in Taicang High tech Zone, Jiangsu Province, has a promising future. Map supply for Taicang High tech Zone

This year marks the 10th anniversary of the establishment of a comprehensive strategic partnership between China and Germany. Since the establishment of diplomatic relations between China and Germany for over half a century, the relationship between the two countries has maintained a high level of development, and cooperation in various fields has been continuously consolidated and deepened. The cooperation between China and Germany in traditional fields such as economy, trade, industry, and agriculture is constantly deepening, while the cooperation in emerging fields such as green, low-carbon, and digital economy is constantly enriching, injecting momentum for mutual benefit and win-win cooperation between the two countries.

Deepening cooperation in traditional fields

Optimistic about China's development prospects

Recently, in Stuttgart, the capital of Baden-W ü rttemberg, Germany, more than 300 guests from the political and business circles of China and Germany gathered together to warmly discuss the topic of investment in China at the 2024 "Invest in China" series of events in Germany. Standing at a new starting point, the two countries are consolidating consensus through dialogue and promoting the economic and trade cooperation between China and Germany to a new level.

A report from the German Institute of Economics shows that in 2023, Germany's total direct investment in China reached a record high of 11.9 billion euros, accounting for 10.3% of Germany's total overseas investment, the highest level in 10 years. According to the latest data from the Chinese Ministry of Commerce, Germany's investment in China increased by 48% in the first quarter of this year. The popularity of "investing in China" confirms that many German companies continue to have a positive outlook on China's development prospects, considering China as an important innovation and supply chain base, and considering China's business as the main growth engine.

Not long ago, BASF Shanshan Battery Materials Co., Ltd., a Sino German joint venture, completed and put into operation the second phase of its Changsha base. The company's annual production capacity of positive electrode materials has increased to 100000 tons, and batches of high-quality lithium-ion battery positive electrode materials will become the power "engine" for products such as laptops, smartphones, and electric vehicles; At the Dadong factory of BMW Brilliance Automotive Co., Ltd. in Shenyang, Liaoning Province, a new type of pure electric vehicle slowly drove out of the assembly line, with the words "600000" flashing continuously on the rear electronic screen. On the occasion of the 30th anniversary of BMW Group's entry into the Chinese market, BMW Brilliance welcomed its 6th millionth complete vehicle offline

In the view of Sigfried Ruswolm, President of the German Federation of Industries, the industrial cooperation between Germany and China has been going on for decades, and in the future, trade between Germany and China, as well as between Europe and China, will achieve greater development.

As one of the key areas of traditional cooperation, Sino German agricultural cooperation also plays a positive role in promoting the development of Sino German relations. At present, it is the season when peaches are ripe, and the Silver Yellow Green Agricultural Ecological Park in Beijing is full of vitality. The small meteorological monitoring device in Taoyuan monitors temperature, humidity, and other field environments in real-time, providing data support for agricultural decision-making and intervention; There are small micro sprinkler nozzles hanging between peach trees, which can achieve precise and economical watering. Since the unveiling of Bayer Group's first "Yunyuan Farm" sustainable demonstration project in the Asia Pacific region in September 2021, the ecological park has increased annual revenue by 10%, saved costs by 20%, and processed 4000 liters of pesticide containing waste liquid, which has written a vivid footnote for sustainable agricultural cooperation between China and Germany.

Both China and Germany are agricultural powers with abundant agricultural resources and advanced agricultural technologies. Professor Li Yumei from China Agricultural University, who has participated in Sino German agricultural cooperation projects multiple times, believes that both sides will jointly explore modern agricultural development models such as ecological agriculture, enhance the multifunctionality of agriculture, and contribute to the sustainable development of global agriculture. Lena Leishner, the international cooperation project leader of the German Agricultural Association, stated that Sino German agricultural cooperation has a broad and solid foundation, and the future prospects of cooperation are infinite.

Deeply embedded collaborative innovation

Jointly promoting green transformation

Entering the Deren Solar Park in Brandenburg, Germany, photovoltaic modules are converting solar energy into a continuous stream of electricity, delivering clean and renewable green electricity to thousands of households through the power grid. The park was officially put into operation in June 2023 and is expected to produce over 150 million kilowatt hours of clean electricity annually, benefiting approximately 64000 households. The photovoltaic modules with an installed capacity of 154 MW in the park are provided by China Chint New Energy Technology Co., Ltd.

"China's exports of photovoltaic modules to Europe have always maintained a good trend," said Driss Aker, Policy Director of the European Photovoltaic Industry Association. The Director of the International Energy Agency, Fatih Birol, believes that in the field of clean energy, China has set clear research and innovation goals and taken measures to implement them. "We are now able to use photovoltaic technology at a more affordable price, and China has played a very important role in it."

The German Solar Industry Association recently released a report stating that over one million new photovoltaic power generation and heating systems will be installed in Germany in 2023, setting a historical record. It is expected that the demand for photovoltaic systems in Germany will continue to grow in 2024. Not long ago, China and Germany officially launched a dialogue and cooperation mechanism on climate change and green transformation, and recently held its first high-level dialogue. A China Germany industrial carbon reduction working group will also be established. The industrial and supply chains of China and Germany are deeply intertwined, and the market is highly dependent. Deepening cooperation and working together can benefit both sides.

The well-known German material manufacturer, Covestro Group, has been rooted in the Chinese market for decades. Its world's largest production base is located in Shanghai, with 12 factories equipped with advanced production technology, covering major product lines, and green electricity usage accounting for over 40%. As of the end of 2023, Covestro Group has invested over 4 billion euros in the Chinese market. "To address global challenges such as climate change, China has set ambitious emission reduction targets. We are willing to work together with our Chinese partners towards a greener and more sustainable direction," said Shi Lewen, CEO of Covestro Group.

On the Chengdu Chongqing Expressway corridor, hundreds of hydrogen fuel cell vehicles pass by every day, and the new scene of carbon reduction brought about by the development and application of hydrogen energy is receiving increasing attention. Bosch Hydrogen Power Systems (Chongqing) Co., Ltd., jointly established by Bosch Group of Germany and Qingling Automobile Group of China, is Bosch's first hydrogen fuel cell engine joint venture outside of Germany. As of now, the company has produced more than 1800 hydrogen fuel engines, and the latest 300 kW hydrogen power module has begun in vehicle testing.

"China is not only a consumer market, but also an innovation center," said Stefan Harton, Chairman of the Bosch Group's Board of Directors. Bosch is committed to investing in China and leveraging local talent and innovation to drive breakthroughs in emerging fields.

Digging deep into potential and moving towards new trends

Jointly promoting the development of digital technology

The German Association for Information Technology, Telecommunications, and New Media predicts that the size of Germany's digital economy will continue to grow in 2024, with the potential to reach 224.3 billion euros. At the Munich International Auto Show in Germany, excellent supply chain enterprises in the field of intelligent connected vehicles in China, including Shangtang Jueying, Black Sesame, and Qingzhou Zhihang, brought numerous new products and technologies. Xu Li, Chairman of Shangtang Technology, looks forward to strengthening the open application cooperation of artificial intelligence between Chinese and German enterprises, and jointly promoting the transformation and development of artificial intelligence and related industries in both countries.

In recent years, Siemens has fully integrated innovative digital solutions into China's economic development, continuously increasing investment in China, and working together to achieve sustainable development. In 2023, Siemens will increase its capital and expand its Chengdu Digital Chemical Plant, actively participating in China's digital transformation. In the 11th batch of global lighthouse factories released by the World Economic Forum, Siemens Chengdu Digital Factory was awarded the "Sustainable Lighthouse Factory" due to its comprehensive digital energy system, cutting-edge technologies such as artificial intelligence, and advanced product green design concepts.

According to the CEO of Siemens Digital Industries Group, Neko, Siemens has 21 research and development centers in China, with over 5400 R&D and engineering personnel, as well as approximately 12300 valid patents and patent applications. "China is one of the largest and most innovative markets in the world. Many of our products are first launched in China," said Naiko. Currently, China is accelerating the construction of new infrastructure and promoting high-quality development. Siemens hopes to continue to deepen cooperation with Chinese partners and work together to promote the development of new productive forces.

German company Imenda is a leading global supplier of motors and large drive systems, committed to technological innovation with high reliability and efficiency, continuously improving industrial efficiency and electrification levels, and promoting digital transformation and sustainable development of the industry. In May this year, Yinmengda started the second phase of its factory project in Yangzhou, Jiangsu. According to Mike Regal, CEO of IMD, China has become a key global research and manufacturing base for IMD. Yinmengda has a strong matrix in China, covering one global headquarters of a business group, one regional headquarters, four factories, 13 branches, and five research and development centers, with a total of over 3500 employees. The company plans to continue increasing investment in China and inject new impetus into the development of advanced manufacturing industry with Chinese partners.

"China is accelerating the development of new productive forces, while Germany has strong technological strength and a long-standing culture of innovation. The two countries seek win-win cooperation with a market and global perspective, and will jointly create new growth points for cooperation in digital economy, artificial intelligence, green development, and other areas." said Hu Zinan, a researcher at the German Research Center at Tongji University.

This year, China and Germany signed a joint statement of intent on cooperation in the field of autonomous connected driving, which will further promote the high-quality development of the intelligent connected vehicle industry between the two countries. Not long ago, the second meeting of the China Germany Transportation Forum was held in Berlin, and the transportation departments of the two countries reiterated their commitment to working together to promote sustainable transportation cooperation and jointly promote technological innovation in the transportation sector. "We are willing to continue to strengthen cooperation with China in areas such as sustainable transportation and technological innovation, and jointly contribute to addressing global challenges," said Hartmut Hopner, State Secretary of the German Federal Ministry of Digitalization and Transport.