China Welcomes Germany Economic Delegation's Luxurious Members with Enthusiasm

Large-scale Investment Expected as German Economic Heavyweight Visits China on the 4th
Opposition to Chancellor Scholz's China Visit Reflects Political Calculations in Germany

[Asia Economy Senior Reporter Cho Young-shin] Ahead of German Chancellor Olaf Scholz's visit to China, the German business community has formed a delegation with a luxurious lineup, according to Chinese economic media Caijing on the 1st.

[Image source=Reuters Yonhap News]

Chancellor Scholz will officially visit Beijing, China, leading the German economic delegation on the 4th, and hold talks with Chinese President Xi Jinping and Premier Li Keqiang. Scholz is the first G7 leader to visit China since the outbreak of COVID-19. Although there are considerable critical voices within Germany and the European Union (EU) regarding Scholz's visit to China, the visit is expected to proceed as planned.

Caijing reported that the delegation includes 12 prominent figures from the German business sector, such as Oliver Blume, CEO of Volkswagen; Roland Busch, CEO of Siemens; Bel?n Garijo, CEO of Merck; Christian Sewing, CEO of Deutsche Bank; Martin Bruder M?ller, Chairman of the Board of BASF; and Ugur Sahin, founder of BioNTech. Additionally, BMW, HiPP (Germany's leading infant food company), Baker Chemical, Adidas, and Bayer are also part of this economic delegation.

Caijing emphasized that business leaders from Germany's core industries such as automotive, chemical, biotechnology, and food are visiting China in large numbers. It also pointed out the importance of noting that all these companies conduct significant business in China.

Ding Chun, Director of the European Research Institute at Fudan University, explained, "The companies included in the economic delegation are leading firms in Germany's key industries and have long-term cooperation with China. China's vast market and perfect supply chain align with the global strategies of Germany's leading companies." He added, "Europe is currently facing a (short-term) energy crisis, which also makes investment in China attractive. China's relatively low energy costs and well-established energy supply chain provide a comparative advantage." This implies that during this visit, large-scale investments in China could be made in sectors such as automotive (electric vehicles), chemicals, pharmaceuticals including biotechnology, and food.

Caijing cited statistics from the Chinese Ministry of Commerce, reporting that foreign investment in China reached 1.0376 trillion yuan (approximately 195 trillion KRW) by September this year, a 15.6% increase compared to the same period last year. Among this, German investment in China increased by 114.3% compared to the previous year.

It also added that over the past four years, investments from major European countries such as Germany, the Netherlands, the UK, and France accounted for 87% of total European investment in China.

Trade volume between the two countries is also rapidly increasing every year. As of last year, trade between China and Germany reached 246 billion euros (approximately 346 trillion KRW). This year, it is widely expected that trade volume will surpass last year's figures significantly.

However, there are also forecasts that Germany's investment in China may fall short of expectations. Several EU countries, including the United States, criticize China over human rights issues in Xinjiang and the Taiwan unification issue, which means Chancellor Scholz cannot avoid being cautious. Although Scholz has stated that he does not want to decouple from the Chinese economy, internal opposition within Germany cannot be ignored.

The Global Times reported on the 1st that considering anti-China sentiment within the EU and Germany, the German business community supports Chancellor Scholz's visit to China. It also pointed out that the negative atmosphere regarding Scholz's visit is due to political factionalism within German politics.

Chui Hongjian, Director of the China Institute of International Studies, stated, "The German business community is well aware of the significant benefits that can be gained through economic cooperation between the two countries," and argued, "China and Germany need to manage their differences and further expand opportunities for cooperation through this visit to China."

This content was produced with the assistance of AI translation services.