German firms increasing R&D, ecosystem-level ties

This long-term commitment reflects not only confidence in the Chinese market, but also recognition of the country's growing innovation capacity.

In fact, 55 percent of German companies operating in China expect their Chinese counterparts to become innovation leaders in their industries within the next five years, and nearly half of the surveyed firms plan to enhance competitiveness through partnerships with Chinese players.

German high-tech firm Trumpf Group, a century-old leader in machine tools and laser technology, has seen rapid growth in China since entering the market in 2000.It has also deepened cooperation with local partners in advancing manufacturing digitization.

"In the new energy vehicle sector alone, over 2,000 processes require lasers. For example, copper and aluminum alloys — key materials in power batteries — are highly reflective and can create welding splashes that pose safety risks," said Yang Gang, president of Trumpf Group (China). "By working with Chinese partners, we've developed processes to suppress splatter and overcome these technical bottlenecks."

Sino-German cooperation is now scaling from individual projects to ecosystem-level coordination, encompassing shared technologies, harmonized standards and integrated production capacity.

Reflecting this growing momentum, earlier this year BMW deepened its local AI ecosystem by integrating DeepSeek in large language models, following its strategic partnership with Alibaba. In June, the Sino-German Standardization Innovation Center was officially launched, aiming to produce more joint standardization outcomes in smart manufacturing and beyond.

Meanwhile, Feiwo Technology signed a strategic cooperation agreement with German aerospace parts manufacturer Heggemann, combining China's cost-efficiency and Germany's lean production expertise to jointly develop core aircraft components.

Smart manufacturing has been identified as a national priority in China, and international cooperation — particularly with Germany, a long-time industrial partner — plays a crucial role in driving technological advancement and industrial upgrading.

In the face of growing global uncertainties, many German companies noted that Sino-German cooperation in smart manufacturing is expected to generate mutual benefits and contribute to greater stability in global supply chains.

"Sino-German cooperation offers mutual benefits," said Heuser. "For China, it is access to German industrial know-how and European Union market pathways. For Germany, it is faster innovation cycles and access to China's vast data resources. Together, we believe we can set global benchmarks for Industry 4.0, combining Germany's quality-first approach with China's speed-to-market advantage."

Xinhua