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German companies ramp up investment in China(Xinhua) 09:34, April 12, 2025
*German investment in China has demonstrated a marked upward trajectory in recent years, particularly in sectors such as new energy vehicles (NEVs), chemicals, and machinery manufacturing.
*A growing number of German companies have discovered fresh avenues for growth in China, moved their product offerings upmarket, and diversified their distribution networks. This strategic expansion has reinforced their bullish outlook on investing in the Chinese market.
*As noted by some industry experts in Germany, the continued expansion and growing investments by German companies in China underscore how the country's high-quality social-economic development persists in generating mutual benefits for international businesses -- German firms included.
BEIJING, April 11 (Xinhua) -- ElringKlinger Plastics Technology (Qingdao) Co., Ltd., a German-invested high performance plastics producer, is adding a new production facility in its factory located in the Qingdao Sino-German Ecopark in Shandong Province.
The new facility is part of the ElringKlinger High Performance Plastics Asia Headquarter Project and is four times larger than its existing plant in the Ecopark.
When operational, the project's annual output value is expected to rise from the current 50 million yuan (about 6.94 million U.S. dollars) to 300 to 400 million yuan, according to Wang Yaowen, operations director of ElringKlinger Plastics Technology (Qingdao) Co., Ltd.
Workers work at a workshop of the ElringKlinger Plastics Technology (Qingdao) Co., Ltd. in Qingdao, east China's Shandong Province, April 2, 2025. (Xinhua/Li Ziheng)
Investment of the company is expected to rise from 20 million yuan in Phase I (2019-2024) to an estimated 200 million yuan in Phase II (2025-2029), Wang added.
This project exemplifies how German companies are ramping up their investments in China. German investment in China has demonstrated a marked upward trajectory in recent years, particularly in sectors such as new energy vehicles (NEVs), chemicals, and machinery manufacturing.
According to data released by China's Ministry of Commerce, in 2024, the country saw 59,080 newly established foreign-invested enterprises, marking a 9.9 percent year-on-year increase. Notably, Germany's actual investment in China grew by 2.2 percent during this period (including free port investment data).
During the first two months of 2025, the number of newly established foreign-invested enterprises nationwide reached 7,574, reflecting a 5.8 percent increase compared to the same period last year. Within this time-frame, Germany's actual investment in China surged by 54.7 percent (including free port investment data).
A growing number of German companies have discovered fresh avenues for growth in China, moved their product offerings upmarket, and diversified their distribution networks. This strategic expansion has reinforced their bullish outlook on investing in the Chinese market.
In the Phase II workshop of Siempelkamp (Qingdao), Xue Bingshi, wearing protective goggles, operates a Computerized Numerical Control (CNC) machine tool towering over 4 meters. He mills the surface of a metal plate, which will undergo 17 processes and take over 10 hours before it is transformed into a finished component.
A staff member of Siempelkamp (Qingdao) checks a machine to be exported to Thailand in Qingdao, east China's Shandong Province, April 2, 2025. (Xinhua/Li Ziheng)
This German-invested machinery equipment company has expanded its investment three times since establishing its presence in China in 2014. To date, its registered capital in China has increased to 14.79 million euros (about 16.7 million U.S. dollars), with total investment now reaching 36 million euros.
The company has three phases of construction completed and a fourth one coming up in 2026. "We will expand our workshop capabilities, and that is only one part we are planning for further expansion," said Konstantinos Karakolidis, CEO &CTO of Siempelkamp Qingdao.
"We believe that China is growing and we want to be part of this market, so that's why we continue to invest," Karakolidis stated.
ContiTech Qingdao Rubber &Plastics Technology Co., Ltd., a subsidiary of German automotive component giant Continental, located near Siempelkamp Qingdao, is scaling up its investments in China. In September 2024, the company signed an investment agreement to establish its Asia-Pacific Regional Technical R&D Center for the vehicle parts solutions division in China, with a total investment of 15.96 million yuan.
