FRANKFURT, Dec. 1 (Xinhua) -- Despite global competition, China's strong demand and favorable business conditions are making it even more attractive to German companies, a senior German executive has said.
"China has become a market where not only demand is strong, but other conditions are now more attractive than before," said Christian Sommer, chief executive officer and chairman of the German Center Shanghai and chairman of the German Center in Taicang, in a recent interview with Xinhua.
As the head of organizations that support German business operations in China, Sommer said low industrial electricity costs, a stable energy supply, predictable production expenses, and access to skilled labor are the advantages that make China an appealing destination for German firms.
Although the supply chain in Asia, especially in China, tends to be self-sufficient, German companies remain highly interested in becoming part of it.
The German centers in Shanghai and Taicang serve as platforms to help small and medium-sized German companies gain a stronger foothold in China. There are over 500 German companies in Taicang, where "demand for supporting services like CPAs, legal, IT, and design firms is high."
As competition in China gets increasingly intense, German companies are adapting by shifting to the "local for local" strategy. Sommer considers "local for local" a necessary approach for German companies to remain competitive in China. Some German companies are moving parts of their research and development (R&D) to China in the belief that local teams are better positioned to understand and respond to the needs of the Chinese market.
One example is Gemue Group, one of the world's leading manufacturers of valves, measurement and control systems, which continues to invest in China by upgrading existing product lines and expanding into new sectors.
"This reflects a broader trend among German companies shifting from purely new investments to strategic upgrades of local operations."
He said that tackling major global challenges alone is "slower and harder," while partnership brings greater efficiency and resilience. Differences between countries, he emphasized, should not be viewed as obstacles but as foundations for deeper collaboration. He said China's proposal to build a community with a shared future for mankind had left a strong impression on him.
Sommer added that his perspective is not merely hopeful but confident: "If Germany and China understand and respect their differences, and build cooperation around them, that will be a real source of strength for both sides."
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