German Chancellor Friedrich Merz arrived in Beijing this week for his first official visit to China since assuming office, signaling renewed economic collaboration between the two nations. This diplomatic engagement comes as German companies accelerate investments across the Chinese mainland, with over 500 German enterprises now operating in Taicang alone – a Jiangsu Province city dubbed the "Hometown of German Companies."
Marc Wiese, Commercial General Manager at Waelzholz New Material, attributes Taicang's success to streamlined administrative processes and robust infrastructure. "The local government's commitment to creating a German-friendly ecosystem, from bilingual education to customized industrial parks, makes this an ideal base for European operations," Wiese told CGTN.
Despite global market fluctuations, German investment in China grew 8.3% year-on-year in 2025, driven by advanced manufacturing opportunities and China's push for green technology. Major firms are currently expanding R&D centers in renewable energy and AI sectors, leveraging China's innovation-driven development strategy.
Analysts suggest this trend reflects confidence in Asia's economic resilience, with cross-border supply chain optimization and China's growing middle-class consumption playing pivotal roles. As Merz meets with Chinese leaders this week, business communities await potential agreements on intellectual property protection and sustainable development initiatives.
