China and Germany are significantly enhancing their collaboration in business and technology, with the flow of expertise and innovation now occurring in both directions rather than predominantly from Germany to China. This development was highlighted in a new joint research report that was unveiled in Beijing. The report’s release coincided with the China-Germany (China-Europe) Hidden Champions Forum 2026, an event held in Beijing’s Shunyi district that brought together over 400 executives and business representatives from Europe and China.
The report reveals a growing inclination among European companies to expand their operations in China. Notably, 38 percent of the surveyed European firms expressed plans to boost their research and development investment within China. Additionally, 40 percent of these companies intend to grant their Chinese branches greater operational independence from their headquarters in Germany. This trend underscores the shifting dynamics of business and technological exchange between the two nations.
In a reciprocal move, major Chinese electric vehicle manufacturers, including Li Auto and NIO, have established research and design centers in Germany. This development signifies an increasing two-way technological collaboration, with both countries benefiting from each other’s strengths in innovation and industry expertise.
The event also saw the launch of a public service station aimed at assisting businesses in overcoming technical trade barriers. Furthermore, a new partnership initiative was introduced to encourage German and European companies to engage with Beijing’s economic and technological cooperation zone in Shunyi. These efforts are part of a broader strategy to facilitate smoother business operations and enhance technological partnerships.
According to Tang Wenhong, Beijing is committed to further supporting the cooperation between Chinese and German businesses. The city aims to attract more innovative companies, thereby solidifying its status as an international hub for science and technology. This initiative reflects a strategic effort to foster a conducive environment for business growth and technological advancement in the region.