Maximilian Butek- German Companies Remain Confident in the Long-Term Value of Investing in China
01:45
ZitaLai,journalistfor21stCenturyBusinessHerald
EconomicandtradecooperationcontinuestoserveasastabilizinganchorinChina-Germanyrelations.
AccordingtoPeople’sDaily,areportreleasedinMaybyGermanyTrade&Invest(GTAI)showsthatChinesecompaniesmaintainedstronginvestmentmomentuminGermanyin2023,with199newprojects—makingChinathethird-largestsourceofforeigninvestmentprojectsinthecountry,trailingonlytheUnitedStatesandSwitzerland.
Atthesametime,GermanfirmsaresteppinguptheircommitmenttotheChinesemarket.Despitea27.1%year-on-yeardeclineinChina’stotalactualuseofforeigncapitalin2024,datafromChina’sMinistryofCommerceshowsthatGermaninvestmentintoChinagrewby2.2%,includingflowsviafreetradeports.
“Ourmembercompaniesalwaysthinklong-termbutnevershort-termvaluewhentheyinvestinChina.Theyunderstandthattostaycompetitive,continuedinvestmentinChinaisessential—notnecessarilytoexpandcapacity,butincreasinglytofocusonR&D,”saidMaximilianButek,ExecutiveDirectoroftheGermanChamberofCommerceinChina,inanexclusiveinterviewwith21stCenturyBusinessHeraldduringtherelocationceremonyoftheGermanChamber’sGuangzhouoffice.
Astradeprotectionismcastsashadowovertheglobaleconomy,MaximilianemphasizedthatmostGermancompaniesarefamily-ownedcompanies.Thereforetheirinvestmentdecisionsaremadewithaten-yearoreventwenty-yearhorizoninmind,placinghighvalueonastablepolicyenvironment.“Anyformofuncertaintyisbadforbusinesses,”henoted.
ThenewGuangzhouofficeoftheGermanChamberofCommerceinChina,whichhelditsrelocationceremonyrecently,hasbeensupportingGermanbusinessesinChinasinceitsestablishmentin1996.Itprovidesservicessuchasindustryanalysis,policyconsultation,andmarketpromotion—especiallyaidingmembercompaniesinenteringtheChinesemarketandnavigatingtheGuangdong-HongKong-MacaoGreaterBayArea.