A drone photo taken on June 7, 2024 shows an exterior view of Volkswagen (Anhui) Automotive Company Limited in Hefei, east China's Anhui Province. (Xinhua/Guo Chen)
"While global uncertainty has raged in recent years, business cooperation between both countries remained resilient," said renowned German economist Hermann Simon.
BERLIN, Feb. 24 (Xinhua) -- China remains the best choice for German companies, as China's push for technological self-reliance, industrial upgrade and high-quality growth creates long-term opportunities, said renowned German economist Hermann Simon.
"China has a strong supplier infrastructure, a huge market and highly innovative consumers," he told Xinhua in a recent interview. "For many activities, China is the best location."
Simon, known as the father of the "Hidden Champions" theory, said that China's latest developments reflect both continuity and ambition.
"For many years, China has been our largest trading partner," he said. "While global uncertainty has raged in recent years, business cooperation between both countries remained resilient."
He noted that German companies are performing strongly in China, operating more than 2,000 factories to date.
Simon also expressed optimism regarding German Chancellor Friedrich Merz's official visit to China from Wednesday to Thursday. "Learning from each other is essential to sustaining long-term competitiveness on both sides," he said.
He emphasized that stable political relations enhance corporate confidence. "Good political relations have a two-fold effect," he said. "They may ease transactions and investments, but more importantly, they change the attitude towards China."
When relations are positive, German firms are more likely to invest in and visit China, while Chinese managers and entrepreneurs are increasingly willing to invest in Germany, he said.
Turning to China's strategic priorities, Simon said the latest five-year plans emphasize industrial strength, technological sovereignty and self-reliance. He noted that China's shift toward high-quality development represents a structural transformation.
Looking ahead, Simon said German firms should actively participate in China's next wave of technological upgrading rather than fear of being left behind.
"The right conclusion is to become an insider and benefit from developments in China," he said. "We in Germany can learn from that."
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