German companies are strengthening their ties with the Chinese mainland, reaffirming their commitment to one of the world’s largest markets despite rising concerns over potential European Union protectionist measures. On Thursday, Mercedes-Benz CEO Ola Kaellenius cautioned the EU against increasing protectionism towards China, warning that such moves could be detrimental to Europe’s economic region.
“Protectionism is not the way forward,” Kaellenius stated following the carmaker’s quarterly results. “An open market is essential for economic growth and innovation.”
Kaellenius’ sentiments echo those of many German businesses. A recent survey by the German Chamber of Commerce in China revealed that 78 percent of German companies anticipate consistent growth in their industries in China over the next five years. Notably, 48 percent of respondents expect annual expansion rates between 5 percent and 20 percent, with larger companies exhibiting even greater optimism—90 percent foresee significant industry growth.
Among these optimistic enterprises is the Bosch Group. Xu Daquan, president of Bosch China, emphasized China’s role as a key innovation and research hub in addition to being a significant market. “Despite various challenges and uncertainties, Bosch China achieved sustained and robust growth in 2023,” Xu remarked.
In 2023, Bosch Group’s sales in China reached 139.1 billion yuan (about $19.5 billion), marking a 5.2 percent year-on-year growth. The company now employs nearly 58,000 people in the country. Bosch plans to maintain its strong presence in the Chinese market by continuing investments, enhancing local manufacturing and research capabilities, expanding local alliances, and providing more effective customer and market services.
A study by the German Economic Institute further underscores this trend, showing that Germany’s direct investment in China hit a record high last year. Investments reached 11.9 billion euros (approximately $12.7 billion), up 4 percent from the previous year. This amount accounts for 10 percent of Germany’s total foreign investment in 2023, a significant increase. Remarkably, German companies’ cumulative investment in China over the past three years equaled the total investment made from 2015 to 2020.
As German firms continue to deepen their engagement with the Chinese market, their actions suggest a strategic focus on long-term growth and collaboration, despite geopolitical tensions and protectionism debates within the EU.
Reference(s):
German companies embrace Chinese market amid EU protectionism concerns
cgtn.com
