A wave of pre-agreements were signed between Chinese and German companies on Wednesday, signaling the strengthening of economic and trade cooperation between the two nations.
The agreements were inked at a pitch event in Dusseldorf, promoting the upcoming second China International Supply Chain Expo (CISCE).
Nearly 130 representatives from Chinese and German businesses attended the roadshow, jointly organized by the China Council for the Promotion of International Trade (CCPIT) and German business associations. The event aimed to encourage greater German participation in the CISCE, which will be held in Beijing from November 26 to 30 this year.
The inaugural CISCE in 2023 attracted over 500 exhibitors and generated approximately 21 billion U.S. dollars in trade. Organizers are aiming to build on this success, with Germany playing a key role in the upcoming expo.
"In our vocabulary, when we talk about German companies, which means we have a very long-term and reliable partners, so which also means the resilience of the supply chain. I would say Chinese companies and German companies, in terms of the international supply chain cooperation, they are ideal partners," said Lin Shunjie, chairman of China International Exhibition Center Group.
The strong economic relationship between China and Germany is evident: bilateral trade reached almost 280 billion U.S. dollars last year, making China be Germany's largest trading partner for the eighth consecutive year. German businesses are also significantly increasing their investments in China.
At the promotional meeting, Ren Hongbin, chairman of the CCPIT, noted that economic and trade cooperation serves as a cornerstone of China-Germany relations. He said China looks forward to both countries leveraging their respective advantages, exploring the vast potential for mutually beneficial cooperation, and becoming key partners in global supply chains.
"This international cooperation between the two countries sets a great example for others. The investment Germany made in China in 2023 was around 13 billion U.S. dollars and it was record-breaking. It reaches 10 percent of Germany's overseas investment total, and also the highest in the past 10 years," he said.
The CISCE's significance lies in China's crucial role in maintaining global business operations.
Clemens Schutte, director of International Business at Messe Düsseldorf, emphasized the common ground between Germany and China, citing shared technological advancements and mutual business opportunities.
"It's (China) today not only a production factory for the world, but today it's really a very innovative, technologically advanced country like Germany, there are high technical standards. So, there are so many interfaces and so many common topics and challenges, and from my viewpoint, that makes it very important to make common steps also in the future to develop this relationship," he said.
Liu Jing from ThyssenKrupp Automotive Supply Chain Management highlighted the interdependence between Germany and China across various industries.
"In Germany, across many industries, including the automotive sector that I'm in now and the healthcare industry that I used be in, we rely heavily on suppliers from China. This includes packaging materials, raw materials, and even components used in our products. Germany boasts advanced technology and mature production equipment, which leads to many products being manufactured here and then sold back to China. This is driven by China's massive and potentially lucrative market because as we know, China has a huge population and a strong purchasing power," said Liu.
The agreement signed between the Chinese and German sides signifies a commitment to showcasing the best of German expertise at the CISCE in Beijing.
The second CISCE, the world's first national-level exhibition dedicated to supply chains, has already drawn over 600 domestic and international companies, including major German firms like Siemens, Bosch, and SAP.
China, Germany strengthen economic ties with supply chain expo agreements
