China-Germany Relations: Opportunities Emerge as Investment Ties Grow - China Briefing News
A new chapter of the love affair between China and Germany is unfolding as the protectionist Trump administration targets both countries with. Trade the two countries has doubling almost every five years, as part of a comprehensive strategic partnership. that Germany is now the most powerful country in the EU may also be having never completed). The economic relationship between China and Germany.
At the same time, only one-third of all German companies in China are confident that their investments in this project will have a positive impact on their business. Most German investment in the BRI is in the automotive and construction sectors, making up almost 40 percent of total investments. The remaining is in sectors such as logistics, energy, business and finance, and transportation.
According to the German Chamber of Commerce, 46 percent of the German companies participating in the BRI do so as subcontractors or suppliers to Chinese companies.
The region is known for its ready access to the Yangtze River Delta region, and its large population. Since AugustTaicang has attracted more than small and medium-sized German companies, generating sales revenue of RMB The German Center Taicang, a base of Sino-German cooperation, with its proximity to the resources of Shanghai and Suzhou, prepares businesses operating in the automotive, machine construction, electronics, energy, and consumer products sectors to enter the Chinese consumer market.
According to the aforementioned Business Confidence Survey, German companies are planning further investment in Jiangsu, Guangdong, Sichuan, and Chongqing.
China-Germany Relations: Opportunities Emerge as Investment Ties Grow
Tier 1 cities like Shanghai, Beijing, Guangzhou, and Shenzhen also remain popular locations for German investment because of their large populations exhibiting mature consumer behavior. German investors also feel threatened by Chinese incursions into their intellectual property rights.
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Horbach points out that Germans are very proud of their technology as something that separates the German economy from other economies. This causes the German company to lose market share and to consider pulling out their investment.
From a business perspective, Ms. Horbach notes that certain investment restrictions, such as requiring German companies to enter China only through joint ventures or not being allowed to entirely engage in the venture give German companies the feeling of not being supported, especially when no such restrictions are applied to Chinese firms doing business in Germany.
China–Germany relations - Wikipedia
Horbach believes that it is likely that only German companies with well-planned business investment strategies will be able to establish themselves in China. And with China-US hostilities ratcheting up in recent months, German companies can take on a stronger leadership role in the Middle Kingdom. The successes of the China-Germany relationship can serve as a model not just for many medium-sized powers, but even for the United States.
Unlike Portugal or the NetherlandsGerman states were not involved, on the state level, in the early th centuries contacts between Europe and China.
Nonetheless, a number of individual Germans reached China at that time, in particular as Jesuit missionaries. Some of them played a significant role in China's history, as did Johann Adam Schall von Bell in China inwho was in Beijing when it was taken by the Manchus inand soon became a trusted counselor of the early Qing leaders.
Meanwhile, in Rome another German Jesuit, Athanasius Kircherwho never got to go to China himself, used reports of other Jesuits in China to compile China Illustrata, a work that was instrumental in popularizing knowledge about China among the 17th-century European readers. The earliest Sino-German trading occurred overland through Siberiaand was subject to transit taxes by the Russian government.
In order to make trading more profitable, German traders took the sea route and the first German merchant ships arrived in Chinathen under the Qing Dynastyas part of the Royal Prussian Asian Trading Company of Emdenin the s.
On 2 SeptemberFriedrich Albrecht zu Eulenburg and a representative from the Zongli Yamen signed the Treaty of Tianjinwhich opened formal commercial relations between China and Prussiawhich represented the German Customs Union.
Prussia would later on become the dominant and leading part of the newly founded German empire. During the late 19th century, Sino-foreign trade was dominated by the British Empireand Otto von Bismarck was eager to establish German footholds in China to balance the British dominance.
InBismarck had the Reichstag pass a steamship subsidy bill which offered direct service to China. In the same year, he sent the first German banking and industrial survey group to evaluate investment possibilities, which led to the establishment of the Deutsch-Asiatische Bank in Through these efforts Germany was second to Britain in trading and shipping in China by Inthe German empire took advantage of the murder of two German missionaries to invade Qingdao and founded the Jiaozhou Bay colony.
Sino-German cooperation [ edit ] Main article: Sino-German cooperation Although intense cooperation lasted only from the Nazi takeover of Germany in to the start of the war with Imperial Japan inand concrete measures at industrial reform started in earnest only init had a profound effect on Chinese modernization and capability to resist the Japanese in the war.