XI'AN, March 27 (Xinhua) -- The gas generator expansion project of ZF LIFETEC, the passive safety brand under ZF, a world-leading automotive supplier, has entered operation in Xi'an, northwest China's Shaanxi Province, marking yet another substantial expansion for ZF in the city after years of deep cultivation.
"We built a plant here 16 years ago, and it has been very successful. In 2024, we decided to invest in new technologies to prepare for the future," said Manfred Suess, vice president of the inflator product line at ZF LIFETEC.
The newly launched expansion project broke ground in December 2024 and was officially completed in March. With a total investment of 150 million euros (about 173.3 million U.S. dollars), the project integrates both production and R&D functions.
On the production side, advanced German gas generator assembly lines have been introduced, which will add an annual capacity of 4.1 million hybrid gas generators and 1.8 million pop-up hood actuators once fully operational. On the R&D side, the project leverages ZF LIFETEC's global technology resources to establish a passive safety testing laboratory and focus on the development and trial production of next-generation hybrid gas generators.
Nick Song, president of ZF LIFETEC China, the Republic of Korea, and Thailand, noted that the project represents not just an expansion of capacity but also a technological upgrade and an enhancement of global presence, adding that the products will not only meet domestic demand but also be exported to global markets.
ZF's sustained commitment is no isolated case. In recent years, a growing number of German companies have set their sights on China, sparking a new wave of investment.
German chemicals giant BASF on Thursday put its massive production complex in south China's Guangdong Province into full operation, marking the largest single investment project wholly owned by a German enterprise in China.
With an investment of 8.7 billion euros, the integrated site covers about 4 square kilometers in Zhanjiang City, Guangdong, the company said, a move that industry analysts say underscores BASF's long-term commitment to expanding in China as the country continues to promote high-standard opening up.
The complex, known as a Verbund site, has launched 32 production lines and is producing more than 70 products, including basic chemicals, intermediates, and specialty chemicals for the transportation, consumer goods, electronics, and home and personal care industries.
Other German giants are amplifying innovation-focused investments. BMW China deepened its local AI ecosystem by integrating DeepSeek, while Porsche launched its first strategic overseas R&D center in Shanghai. The Sino-German Standardization Cooperation Innovation Center in Frankfurt commenced operations, fostering standardized outcomes in smart manufacturing.
Data from the German Economic Institute show that new German direct investment in China amounted to around 7 billion euros, hitting a four-year high in 2025, well above the roughly 4.5 billion euros in 2023 and 2024.
A 2025/26 business confidence survey released by the German Chamber of Commerce in China shows that the proportion of respondent enterprises believing Chinese companies will take a leadership role in industry innovation has reached a record high of 60 percent. Additionally, 56 percent of respondent enterprises plan to further deepen cooperation with Chinese partners.
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