Economic Watch: German businesses look to stronger supply chain cooperation with China

by Xinhua writer Li Hanlin
DUSSELDORF, Germany, Sept. 14 (Xinhua) — “China is the prior choice for German companies to organize global supply chains and industry layouts,” “We deeply appreciate China’s push for higher-level openness,” and “We hope China and Germany can work together to maintain the stability and smoothness of the supply chain.”
These views were resonating among German executives at the second China International Supply Chain Expo (CISCE) roadshow on Wednesday. They expressed eagerness to use CISCE to enhance their engagement with the Chinese market, explore new opportunities, and build a win-win global supply chain system.

GLOBAL OPPORTUNITIES
As the world’s first national-level exhibition dedicated to supply chains, CISCE offers a unique platform for global businesses to strengthen industry and supply chain cooperation. The second CISCE has already drawn over 600 domestic and international companies, including major German firms like Siemens, Bosch, and SAP.
“We will be showcasing in the intelligent automotive supply chain section at the second CISCE. We look forward to promoting industry exchanges, fostering cooperation, and driving innovation and transformation toward smart and sustainable supply chains,” said Xu Daquan, president of Bosch China.
Xu emphasized that the automotive supply chain is vast and complex, making its stability crucial for maintaining product competitiveness. In light of the industry’s transformation and global market expansion, CISCE holds particular significance.
Through a series of matchmaking events, new product displays, project signings and promotions, German companies have expanded their industry networks and built more stable, resilient supply chains. These efforts have enhanced cooperation across various supply chain segments, creating greater opportunities for their growth in China.
“In this highly integrated world, agile and intelligent supply chains are crucial. The CISCE comes at a perfect time, and SAP looks forward to leveraging business AI embedded solutions to help clients further develop,” said Klaus Neumann, SAP global senior vice president.
CISCE has emerged as a vital international platform, connecting China with global markets and integrating industries, thereby attracting foreign investment and creating opportunities in the Chinese market. At the inaugural CISCE, SAP partnered with leading Chinese companies, such as Huayang Group and EVE Energy, to support the development of a global supply chain.
At the second CISCE, SAP will showcase case studies on the impact of artificial intelligence and algorithmic computing across various industries, with the aim of expanding collaborations with both domestic and international partners.

STABLE SUPPLY CHAIN MATTERS
In recent years, global supply chains have suffered frequent disruptions from the COVID-19 pandemic, geopolitical conflicts, and natural disasters. Ensuring their resilience and stability has become essential for sustained global economic growth. German business representatives emphasized that China not only provides vast market opportunities and cooperation potential but also serves as a key “stabilizing anchor” in the global supply chain.
“China is a significant parts supplier in the global supply chain, and ‘Made in China’ has become a symbol of high quality. China’s supply chain system is not only complete but also highly agile and flexible,” said Andreas Schmitz, president of the Dusseldorf Chamber of Industry and Commerce. He added that the robustness and completeness of China’s supply chain infrastructure instill strong confidence in German companies to further expand their presence in China.
Christian Hinkel, head of corporate communications at Deichmann, Europe’s largest shoe retailer, told Xinhua that Deichmann operates over 4,700 stores across 34 countries, with the majority of its products manufactured in China. The company works closely with 25 long-term partners in China to ensure high-quality products and brand consistency for its customers.
“For example, the China-Europe Railway Express plays a crucial role in stabilizing the Sino-German supply chain. Many of our production materials are transported to Germany via this railway,” Hinkel said. He stressed that strong supply chain cooperation between China and Germany is vital for companies like Deichmann, and expressed hope for a future of secure, stable, and mutually beneficial Sino-German supply chains.
For many German companies, China remains the top choice for global supply chain and industry layout, thanks to its strong commitment to maintaining supply chain stability and efficiency.
Michael Schumann, chairman of the German Federal Association for Economic Development and Foreign Trade, noted that while certain components previously had to be imported from Germany or other European regions, German companies have increasingly shifted their supply chains and production to China. This has led to the development of a production model of “In China, For China” and “In China, For the World.”

CHINA’S INNOVATION AND OPENNESS
German investment in China reached a record 7.3 billion euros (8.09 billion U.S. dollars) in the first half of 2024, according to the German Central Bank. German businesses are optimistic about China’s innovation and openness, expecting stronger cooperation with China.
Clemens Schuette, a board member of the German-Chinese Economic Union, said that many German companies plan to increase their investment in China. Despite current challenges, he is confident in German-China cooperation and sees building green and resilient supply chains as crucial to addressing global challenges.
Schmitz noted that despite the German government’s new China strategy aimed at reducing dependence through diversification, German investments in China have increased, highlighting China’s continued attractiveness.
“For multinational companies, they have already established highly integrated supply networks and gained substantial benefits in China, so reducing their business in China is not a wise choice,” Schmitz said.
He added that German-China business communities should capitalize on opportunities in trade, investment, innovation, and technology to deepen cooperation and achieve mutual development.
Ren Hongbin, chairman of the China Council for the Promotion of International Trade (CCPIT), said that this year marks the 10th anniversary of the comprehensive strategic partnership between China and Germany. He noted that while the bilateral relationship remains robust and cooperation across various fields deepens, economic and trade cooperation continues to be a cornerstone.
“We look forward to both countries leveraging their respective advantages, exploring the vast potential for mutually beneficial cooperation, and becoming key partners in global supply chains,” said Ren. ■