"Providing fertile soil for the high-quality development of foreign enterprises" (Testimonial: China's Opportunities)
——500 German companies in Taicang, Jiangsu Province are growing together with the Chinese market
At Suzhou Chien-shiung Vocational and Technical College in Taicang, students are doing hands-on work.
Photo by reporter Liu Zhonghua
In Taicang High-tech Zone, the work scene of a German company.
Courtesy of Taicang High-tech Zone
Taicang High-tech Zone is full of green trees and has a beautiful environment.
Photo by Cao Jian
At the beginning of this year, BEUMER AG registered in Taicang, Jiangsu Province, China, bringing the total number of German companies in Taicang to 500.
Taicang is currently one of the regions with the highest concentration of German investment in China, and has been awarded the title of China's first and only "Sino-German Business Cooperation Base" by the Ministry of Commerce of China and the German Ministry of Economic Affairs. A few days ago, this reporter came to Taicang, Jiangsu Province, to visit the German enterprises here, and listened to the staff members tell the stories of the enterprises growing together with the Chinese market and the opportunities they saw in China.
Excellent business environment and professional services attract German companies to settle in one after another——
"Nothing to disturb and respond to requests" has become one of the secrets of attracting foreign investment with high quality
It took 14 years from the first German company to settle in Taicang in 1993 and the 100th German company to settle down, and it took just over two years from the 400th German company to the 500th company. The acceleration of Taicang's investment from German companies is inseparable from the good government-enterprise relationship between the local government and German companies. "The government service is thoughtful and meticulous", "the communication between the government and the enterprise is very smooth", "the government and the enterprise have established a stable cooperative relationship", ...... When interviewed by reporters, almost every person in charge of a German company did not hesitate to praise him, and "nothing to disturb, respond to requests" has become one of the secrets of attracting foreign investment with high quality.
Walking into Bornstein Electronics (Taicang) Co., Ltd., in the neat and bright workshop, the workers are skillfully operating on the assembly line. Jean Assmann, general manager of the company, picked up a white square switch on the operating table and introduced it to reporters: "This kind of safety switch is widely used in elevators and other equipment. The current industry standard for safety switches is 1 million trouble-free cycles, while Bornstein's products can reach 10 million cycles. ”
Assman has been in Taicang for nearly 20 years, and he was very happy when he heard the news that the number of German companies in Taicang exceeded 500: "The Taicang government has provided many preferential policies for German companies, and the business environment here is getting better and better. German companies have settled down, resulting in a cluster effect, such as the settlement of auto parts manufacturers to attract machine tool manufacturers, and machine tool manufacturers to attract mold manufacturers...... In this way, Taicang has gradually established an industrial chain and supply chain around auto parts, machine tools and other products. ”
The CHIRON Group is a leader in the field of high-speed CNC machine tools. Willy Rest, chief technology officer of the group's Taicang company, told reporters that the group built a factory in Taicang in 2012 and later moved its Chinese headquarters here. "I chose to settle in Taicang, not only because of the concentration of German enterprises here and the complete industrial chain, but also because the local government provides professional and efficient services to enterprises. ”
Located at the entrance of the Dongting Building in the center of Taicang, the flagpole fluttering the Chinese and German national flags is particularly eye-catching under the blue sky. The German Centre Taicang, which opened in Taicang in 2016, provides one-stop business services for nearly 50 companies, including German companies.
"This is the third German Centre in China. Ma Like, general manager of the German Center in Taicang, told reporters that the German Center in Taicang has become an influential investment management and operation platform for German enterprises, attracting German enterprises in the fields of sales, law, accounting, and information technology. Ma Like said: "Taicang's excellent business environment and the government's professional services attracted us, especially Taicang's support for German companies. Taicang High-tech Zone assigns a government and enterprise affairs officer to each German company, so that enterprises can easily and quickly find their own liaison when they encounter problems. I was impressed by the efficient service. ”
Industrial agglomeration effect ensures the stability of the supply chain——
More than half of the German companies carried out localized R&D, and more than 90% of the German companies settled in the early stage to complete the capital increase and production expansion
Walking into the warehouse of Ou Ya Arte Water Art (Taicang) Co., Ltd., the workers are busy sorting out the goods, including white flower stands, black pipelines, etc. This is a German specialized and special new enterprise in the field of multimedia music fountains and garden ponds in the field of water purification. "We produce more than 4,000 kinds of materials. When we first entered the Chinese market in 2004, almost all of our materials had to be imported from Germany. With the acceleration of the localization strategy, the proportion of materials and parts produced in China has been increasing, reaching more than 95% so far. Shen Ya, general manager of the company, told reporters, "Now we have more than 150 local suppliers who have long-term cooperation with us, and Taicang Company has provided more than 60% of the materials and parts for the entire Ouyazhou Group." ”
In recent years, German enterprises settled in Taicang have strengthened their localization strategies, and while achieving their own development, they have driven local enterprises to achieve standardized and large-scale production. The rapid development of local suppliers has also helped German companies reduce production costs and improve supply chain efficiency.
"Bornstein has five production sites around the world, and China is the second largest after the headquarters. Our localization strategy in China has paid off, with nearly 100 local suppliers currently supplying us, 70% of which are located in the Suzhou area. According to Assman, Bornstein adheres to the concept of "in China, for China", and has a full chain of R&D, sales, quality control, engineering, and after-sales in Taicang, "about 60% of the products produced in Chinese factories are supplied to the Chinese market, and some are supplied to the headquarters, and the localization strategy has significantly enhanced our competitiveness."
"China is one of the most important markets for CHIRON Group. The output of our machine tools is not high, but the precision requirements are very high, and we need to maintain close communication with upstream and downstream customers. The Taicang Sino-German Industrial Park has provided us with convenience. Thanks to the industrial agglomeration effect, the supply chain here is stable, and we can easily and quickly obtain high-quality parts. Rist said.
At present, more than half of the German enterprises in Taicang have carried out localized R&D, and more than 90% of the German enterprises settled in the early stage have completed capital increase and production expansion, and the average output value of German enterprises per mu has reached 14 million yuan. The high-quality use of foreign capital has made an important contribution to Taicang's high-quality development and the construction of a modern industrial system, while German companies are also seizing China's opportunities and achieving transformation and upgrading in the process of actively integrating into the Chinese market.
As the first German company to settle in Taicang, the spring manufacturer Kern-Liebers has increased its capital 11 times in 30 years, from a "small workshop" with only 6 employees and an area of 400 square meters to a "spring kingdom" with 70,000 square meters of self-built factories and an annual output value of 1.5 billion yuan.
At the end of 2023, the second phase of the new energy plant of the German bearing manufacturer Schaeffler's Taicang manufacturing base was officially opened. At the same time, Schaeffler signed an investment agreement with Taicang High-tech Zone for the third phase of the new energy project. Madis Zink, CEO of Schaeffler Group's Automotive Technology Division, said: "The opening of the second phase of the plant is a key step for Schaeffler to accelerate the transition to electrification and accelerate its business development in China. So far, Schaeffler has increased its capital in Taicang 13 times, with a cumulative investment of more than 11 billion yuan. With the opening of the new manufacturing site, Taicang has become one of Schaeffler's largest production sites in the world.
Rapid development of vocational education –
Promote the localization process of the "dual system" and provide technical talents for the industry
In 2023, on the occasion of the 30th anniversary of the first German company settling in Taicang, Taicang will hold a series of activities to celebrate Sino-German cooperation. The "hometown of German enterprises" has been established for 30 years, and the "Sino-German enterprise cooperation base" has shown a vigorous and upward development momentum.
On Rothenburg Style Street in Taicang City, there are a number of German bakeries and German restaurants. For more than 30 years, the local government of Taicang has paid more and more attention to Sino-German cultural exchanges and mutual learning, providing a comfortable, complete and convenient entrepreneurial and living environment for German enterprises and their employees.
"The city of Taicang is changing with each passing day, and the environment is more beautiful. In my free time, I often walk with my family on the marine embankment and Rothenburg Style Street. "I'm interested in Chinese culture and folk music. I also learned to play the bamboo flute, often participated in Jiangnan silk and bamboo performances, and won the first place in the foreign talent art competition. Because of my Chinese proficiency, I have also been invited to host the Taicang Oktoberfest many times. ”
In addition to the Oktoberfest, Taicang also often hosts marathon friendly matches, Sino-German artist salons, "Sino-German Friendship Cup" table tennis matches and other activities, and introduces international service facilities such as Sino-German friendship kindergartens, so that more and more Germans can live here.
Gunther Klein, a German entrepreneur who works for an auto parts company, was also attracted by the charm of Taicang. "I enjoyed my time here. I am fascinated by the long history and culture of the Jiangnan region of China, as well as its rich cultural atmosphere. I like to go to local opera performances, enjoy folk music performances, and feel the charm of traditional Chinese culture. ”
Another factor in the success of German companies in Taicang is the rapid development of vocational education in the region. The "dual system" in German vocational education refers to the training of vocational and technical talents in the form of apprenticeships through school-enterprise cooperation. In order to meet the needs of enterprise development, the Taicang government has promoted Taicang vocational colleges and German enterprises to start the localization process of "dual system".
At Suzhou Chien-shiung Vocational and Technical College in Taicang City, in the Chien-Shiung-Rhein-Koester Industry 4.0 teaching factory, five college students in uniforms are operating electrical automation training equipment, and the teachers on the side are providing technical guidance on students' programming training in the computer system. The center is a training center jointly built by the college and the German company Rhein-Koester, where students receive two years of "dual" vocational education, and then go to Taicang for a one-year internship at a German company, and can directly work after graduation. Zhou Xiaogang, vice president of Suzhou Chien-shiung Vocational and Technical College, said: "Over the years, Taicang has cooperated with German enterprises to carry out the 'dual system' talent training, providing technical talents for cutting-edge manufacturing and boosting the high-quality development of the regional economy. ”
"Thanks to Taicang's well-established vocational education system, we can easily recruit excellent engineers and technicians, which is very important for a machine tool company. Rist said. Eric Moskawa, President of Rhein-Koester, said that the "dual system" education has taken root and blossomed in Taicang, which has effectively promoted German-Chinese industrial cooperation and promoted the high-quality development of German enterprises.
Optimistic about China's economic prospects and market potential——
In 2023, German direct investment in China increased by 4.3 percent year-on-year to a total of 11.9 billion euros
China has implemented five measures to facilitate foreign nationals to come to China, revised the national version of the negative list for foreign investment access, and completely abolished the restrictions on foreign investment access in the manufacturing sector, and promoted the implementation of the "24 Measures for Stabilizing Foreign Investment" to achieve results, and continue to create a market-oriented, law-based and international first-class business environment...... A series of policy measures have released a signal of China's unswerving expansion of high-level opening-up, which has been widely welcomed by foreign enterprises in China, including German companies.
According to a recent research report released by the German Institute for Economic Research, Germany's direct investment in China will increase by 4.3% year-on-year in 2023, reaching a total of 11.9 billion euros, a record high. According to the Business Confidence Survey released by the German Chamber of Commerce in China at the beginning of the year, more than 90 percent of the companies surveyed will continue to do business in China, and 54 percent plan to increase their investment in China.
Klein said that when the company set up a factory in China, it was at the request of a German customer. "With the expansion of China's economic scale and market scale, the Chinese market is as attractive as a magnet for foreign companies. China has grown from a small part of the Group's business to around 50% today, and we believe there is room for even more growth in the future. ”
"Since settling in Taicang in 2004, the actual investment of Oyasia Water Art has been increasing, and the construction of the plant has also been expanded from the first phase to the second phase. Shen Ya said, "China's business environment provides fertile ground for the high-quality development of foreign enterprises. In the past three years, our business has grown at an average annual rate of 30%, and the Group will continue to seize the opportunities in China, increase investment in China, and deepen the Chinese market. ”
Ma Like said that since the second half of last year alone, she has participated in the ribbon-cutting ceremony of the capital increase and production expansion of German enterprises in Taicang many times. "Most German companies recognise China's economic development and market potential and want to take root in China and continue to expand their business in China. Ma Like said.
"This year, the Chinese government has set an expected economic growth target of about 5%, and China's economy has shown strong resilience and potential. China has a huge economic aggregate and a super-large market, and the potential for economic growth is still huge. We are confident in China's economic development and CHIRON Group will continue to strengthen its presence in China. Rist said.
"China insists on expanding high-level opening-up, which is a strong attraction for foreign-funded enterprises. At present, the world economic recovery is sluggish, and China's economy has shown good growth momentum, and it is hoped that more German companies will seize the opportunity and continue to invest in China. Assman said.
Drafting: Shen Yiling