China and Germany are enhancing their collaboration in business and technology, with a notable shift in the flow of expertise and innovation now moving in both directions. This development was highlighted in a joint research report presented at the China-Germany (China-Europe) Hidden Champions Forum 2026, which took place in Beijing’s Shunyi district. The event drew over 400 executives and business representatives from both Europe and China, signaling strong interest in this evolving partnership.
The report reveals that European companies are increasingly committed to expanding their operations within China. Notably, 38 percent of the surveyed European firms plan to boost their research and development investments in the country. Additionally, 40 percent are considering granting more operational independence to their Chinese branches from their German headquarters. Such moves underscore a growing confidence in the Chinese market and a desire for a more localized operational approach.
In a reciprocal fashion, leading Chinese electric vehicle manufacturers, including Li Auto and NIO, have set up research and design centers in Germany. This initiative highlights the burgeoning technological collaboration between the two nations, showcasing a two-way exchange that benefits both sides. As these Chinese brands establish a foothold in Germany, they contribute to a more dynamic and interconnected business environment.
During the forum, a public service station was launched to assist businesses in overcoming technical trade barriers. This initiative is part of a broader partnership program aimed at encouraging German and European companies to engage with Beijing’s economic and technological cooperation zone in Shunyi. Such efforts are designed to promote seamless business interactions and foster a more collaborative international business climate.
Tang Wenhong emphasized Beijing’s commitment to further bolstering cooperation between Chinese and German enterprises. The city’s strategy includes attracting more innovative companies to enhance its status as a global hub for science and technology. This strategic vision aims to cement Beijing’s role as a key player in the international innovation landscape, drawing on the strengths and expertise of both Chinese and German partners.