German Firms Set to Boost Investments in China, Report Reveals

Published on May 27, 2025.
German Firms Set to Boost Investments in China, Report Reveals

BEIJING, May 27 -- A recent survey indicates that over half of the German enterprises involved plan to ramp up their investments in China within the next two years. This insight unfolds from the "2025 China-Germany Hidden Champions Open Cooperation Report," which was unveiled during the China-Germany (China-Europe) Hidden Champions Forum 2025, a three-day event focused on advancing industrial cooperation.

The report highlights that German and European hidden champions—small and medium-sized enterprises that are remarkable yet relatively unknown—continue to find vast growth potential in the Chinese market, suggesting they possess more than double the current market capabilities.

Jointly released by the International Cooperation Center of the National Development and Reform Commission and the DEZ German European Centre for SME Cooperation in China, the report has gained significant attention. The forum drew more than 600 participants, marking a noticeable increase in international attendance, which nearly doubled compared to the previous year.

Hidden champions are distinguished for their prowess in achieving global leadership within specific niches, despite their understated public visibility. This unique positioning allows them to tap into specialized markets effectively.

According to Peng Jian, an expert from the ICC, the specialized Sino-German industrial parks in China have created a beneficial ecosystem that supports German businesses, facilitating a synergistic development model that harmonizes the strengths of both Chinese and German industrial and supply chains.

Furthermore, the report reveals that 36 percent of the enterprises surveyed indicated plans to expedite research and development, as well as innovation initiatives within China, illustrating a proactive approach toward maximizing their presence in this robust market.

Hans-Peter Friedrich, the former vice president of the German Bundestag and current chairman of the Germany-China Parliamentary Group, emphasized the critical nature of engaging with the Chinese market. He stated that neglecting investment in China could result in missed opportunities to access the expansive regional market of Asia.

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