China's extensive market, characterized by its robust industrial chain and dynamic technology innovation ecosystem, presents ample growth opportunities for German small and medium-sized enterprises (SMEs). Ling Ji, Vice Minister of Commerce and Deputy China International Trade Representative, emphasized this potential during a recent meeting with German SMEs in Beijing. He expressed hopes for China and Germany to collaboratively uphold free trade while stabilizing global industrial and supply chains, fostering a mutually beneficial cooperative landscape.

Walter Döring, who leads the German SME delegation and serves as chairman of the Senate of Economy Europe, acknowledged the appeal of the Chinese market to German SMEs. He reiterated a commitment to assist more German businesses, particularly those defined as "hidden champions," to penetrate the Chinese market. These hidden champions are distinguished by their remarkable success in niche sectors, often dominating market share yet remaining relatively unknown.

The commitment of German businesses to the Chinese market is evident, as recent surveys reveal that over half of German enterprises intend to boost their investments in China within the next two years. A report shared during a Sino-German industrial cooperation forum highlighted that these hidden champions could tap into more than double their current growth potential in China.

Jian Junbo, Director of the Center for China-Europe Relations at Fudan University, noted that hidden champions already possess significant competitive advantages. However, the comprehensive supply chains available in China could enhance their effectiveness. By aligning with key upstream and downstream partners in China, these companies could achieve substantial cost reductions and improved competitiveness.

Historically, German companies have been proactive investors in China. According to the Ministry of Commerce, Germany's actual investment in China rose by 12.3 percent during the first four months of the current year. Noteworthy instances of increased investments include Volkswagen Group's establishment of its largest R&D center outside Germany in Hefei and BMW Group's significant capital injection into its Shenyang plant for technological advancements.

Germany's Bayer Group also plans a 600 million yuan investment to set up a new supply center in Jiangsu Province. The allure of China's commitment to high-quality market openings and improvements in its business environment resonates well with European multinational corporations and SMEs, particularly as global protectionism intensifies.

In a backdrop of a complex international landscape, high-level exchanges between China and the European Union have been escalating, reflecting a strengthening of bilateral cooperation. Upcoming meetings, such as that between Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade Maros Sefcovic during a WTO ministerial in Paris, signify ongoing efforts to enhance economic ties.

The economic complementarities shared by China and the EU also present significant opportunities for collaboration. Each side has distinct competitive strengths, which creates a space for reciprocal benefits and drives a strong momentum for cooperative initiatives. As we celebrate the 50th anniversary of China-EU diplomatic relations, the importance of this relationship cannot be overstated.

Cai Run, head of the Chinese Mission to the EU, remarked at a commemoration event that amidst global changes and challenges, the stability of China-EU relations holds increasing strategic value. This stability will provide certainties and positive influences in our increasingly unpredictable world.