German enterprises among strong EU league to further deepen China partnerships at CIIE

China’s strong trade relationship with Germany is expected to be further enhanced with the remarkable presence of major multinational companies at the CIIE.

China remained Germany’s most important trading partner in 2021 for the sixth consecutive year with a volume exceeding 245 billion euros ($246 billion) in 2021, as bilateral trade, investment and many other innovation initiatives continue to flow into the country.

Bilateral trade between China and Germany grew 0.9 percent year on year to $173.57 billion in the first nine months of this year, according to data released by the General Administration of Customs. (GAC), still positive given the impact of the pandemic.

China’s share of German imports rose to 12.4% in the first half of 2022 from 3.4% in 2000, while German imports of Chinese goods increased in value by 45.7% year-on-year in during this six-month period, according to the German Economic Institute. (IW) found.

With the increasing presence of investments and innovative initiatives from German companies, companies are keen to make their presence known at the 5th China International Import Expo, which will be unveiled on Saturday.

EU investment in China exploded in the first eight months of this year with a stunning 123.7% year-on-year increase, according to China’s Ministry of Commerce on Thursday. EU FDI inflow to China jumped 123.7% between January and August.

The consultancy Rhodium Group pointed out that European FDI in China has held up well in terms of volume and has been concentrated in sectors such as automotive, agribusiness, pharmaceuticals and biotechnology, chemicals and manufacturing,

Its latest study reveals that four countries – Germany, the Netherlands, the UK and France – accounted for 87% of the total value of investments, on average, over the past four years, compared to 69% over the past four years. of the previous 10 years.

He also noted that European investment has become much more concentrated, both in terms of the companies investing, the countries of origin and the sectors in which they operate.

The presence of German companies in China in the capital-intensive manufacturing and engineering sectors is notable.

BASF’s Zhanjiang Verbund site in Guangdong province was officially put into operation in September as planned.

It is expected to generate a total investment of up to 10 billion euros by 2030. It is the first fully foreign-funded project in China’s heavy chemical industry and covers an area of ​​about 9 square kilometers. .

It seeks to expand its plastic compound engineering capability in the Asia-Pacific region with growing demand from industries such as automotive, electronics and new energy vehicles.

BASF’s sales in China in the first three quarters rose 5.8% year-on-year to 9.2 billion euros.

The third phase of the BASF Innovation Campus in Shanghai is expected to be completed in early 2023.

At last year’s CIIE, German companies already had a strong presence. A total of 176 German companies showcased their products and services last year and reached an expected total contract value of $16.9 billion at the previous exhibition.

The German joint pavilions organized by AHK Greater China are located in a total of three exhibition halls this year, showcasing products from the fields of food and agriculture, intelligent industry and information, and consumer goods.

It hosts enterprises and commercial companies of various sizes with the largest number of companies present in the smart industry and information technology subsection in Hall 3 of the NECC.

More than two dozen exhibitors and representative offices of the German federal states present their products and services under the “Made in Germany” brand with a total exhibition area of ​​986 square meters.

Teka Appliances Group is participating for the first time in this year’s exhibition with the professional kitchen and toilet utensil brands Teka and Kuppersbusch. It showcases electric cooking solutions to meet carbon reduction initiatives and green energy trends.

Regular CIIE attendees have already seen the benefits, and many other products are following suit.

Kärcher has scheduled the global launch of its robot series and the KIRA B integrated cleaning robot this year.

The smart cleaning technology product was designed through extensive R&D and innovation tailored to the demand of the Chinese market.

It combines the functions of sweeping, scrubbing, vacuuming and mopping, which can solve the comprehensive floor cleaning needs of buildings with one product.

Its AI smart cleaning robots are expected to further enhance Kärcher’s core product matrix in smart cleaning robots and promote the company’s leading position.

Bayer is among the first group of companies to showcase the new crop seed industry subsection at this year’s CIIE.

“As China’s most important import expo, the CIIE greatly facilitates the sharing and growth of international enterprises such as Bayer with China’s economic development,” said Werner Baumann, Chairman of the Board. of Bayer AG.

“Since Bayer’s first presence at the event five years ago, we have worked closely with our Chinese partners to showcase our latest research achievements through this national platform.”

Two innovative prescription drugs that were showcased at the 3rd and 4th CIIE attracted wide attention and won approval from the National Medical Products Administration in the first half of this year.

Elevit’s line of infant care products called “Little Elevit” makes its world premiere this year with two new products, Little Elevit Vitamin D Softgels and Calcium and Zinc Vitamin D Softgels.

Bayer has already registered for the 6th CIIE and said it will continue to tap into its global innovation network and leverage this globally connecting event to continue improving the lives of Chinese patients, customers and producers.

China is not only an important market for German companies looking to conduct local research and development, but also an emerging hub for global markets.

German business innovation and local partnerships have accelerated.

This year’s joint survey by the German Chamber of Commerce in China and BearingPoint found that almost half of respondents say they do research (49%) and development (52%) in China for the Chinese market.

About a third of respondents do research (25%) and development (33%) in China for global markets.

In addition, 43% of German companies demand more autonomy from their headquarters in terms of innovative activities. A quarter (24%) even want their Chinese subsidiary to be able to carry out global R&D.

The technologies and solutions exhibited at the CIIE have managed to attract attention and become solid business models.

Boehringer Ingelheim’s digital sound monitoring tool, which can identify pigs in respiratory distress by monitoring their cough, was tested in selected piggeries after its first appearance at the second CIIE.

The Ingelheim-based company set up its Asian veterinary R&D center in China and launched its R&D project for swine fever vaccines in 2012.

Siemens Healthineers China welcomed its first group of local associates a year after launching its Shanghai Innovation Center in September last year.

It has signed collaboration agreements with local players such as Vivolight and Subtle Medical for precision diagnostics, enhanced medical imaging and cancer treatment solutions.

“We have succeeded in building a strong local supply chain to remain resilient in the face of the uncertainty brought by the pandemic, thanks to a long-term commitment to the Chinese market,” said Jerry Wang, President of Siemens Healthineers. China.

It is considering potential collaboration with local startups in immunotherapy cancer treatments under similar co-creation models to expand its local services.

“We believe our development strategy aligns well with China’s broader focus on encouraging local innovation, and we will continue to be guided by our localized innovation strategy going forward to optimize research and supply chains. local supplies,” he added.

He also hopes to build an innovation ecosystem through close collaboration with the Medical Valley European Metropolitan Region Nuremberg (EMN) association to foster partnerships between European and Chinese startups.

Rajat Agarwal, chairman of Henkel China, said the company’s footprint in China is deep and the vast domestic market plays an important role in its global operations.

“We believe that China will continue to accelerate growth driven by innovation and high-quality development, and this new stage of economic transformation further promotes innovation and sustainability, providing many opportunities for multinationals like Henkel.” , Agarwal said.

China is Henkel’s third largest and fastest growing market and continues to invest in local R&D and production capabilities to improve tailored products and solutions.

Henkel has invested in a materials science-focused fund in China, bolstering its access to the local fast-growing startup scene. Its first application engineering center was inaugurated in Dongguan City, Guangdong Province in August.

In the sports and cultural field, cross-border collaboration should also be further strengthened.

German sports company Adidas has entered into a strategic cooperation agreement with the Chinese Literature and Art Foundation (CLAF) with a three-year partnership to promote Chinese culture and sports.

Their collaboration will range from university sports activities to global initiatives to promote young Chinese artists and designers.

Adidas is increasingly turning to co-creation and development initiatives with local designers and artists to promote sports functionality as well as cultural inspiration for new designs.

It aims to engage local, world-class Chinese designers and artists to inject more creativity inspired by Chinese culture into areas such as product and store design in China and other markets.

The company said it looks forward to leveraging its partnership with CLAF to write a new chapter in China’s sport and culture, in addition to helping China share its unique culture with the rest of the world.

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