China and Germany are enhancing their cooperation in business and technology, with innovation now moving in both directions rather than predominantly from Germany to China. This development was highlighted in a recent joint research report released at an event in Beijing. The report was presented during the China-Germany (China-Europe) Hidden Champions Forum 2026 in Shunyi district, an event that gathered over 400 business leaders and representatives from Europe and China.
The findings of the research indicate a growing interest among European companies in expanding their operations within China. Notably, 38 percent of European firms surveyed expressed plans to increase their research and development investments in China. Furthermore, 40 percent of these companies aim to grant their Chinese branches more autonomy from their main offices in Germany, signifying a shift towards greater operational independence.
This trend is mirrored by Chinese companies, particularly in the electric vehicle sector. Leading Chinese brands like Li Auto and NIO have established research and design centers in Germany. This move underscores the burgeoning two-way technological collaboration between the two nations, suggesting a reciprocal flow of expertise and innovation.
During the forum, a public service station was also launched to assist businesses in overcoming technical trade barriers. Additionally, 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 international business collaboration.
According to Tang Wenhong, Beijing is committed to furthering the cooperation between Chinese and German enterprises. The city aims to attract more cutting-edge companies, thereby bolstering its status as a global hub for science and technology. This strategic focus is expected to reinforce the city’s role in fostering international technological and economic partnerships.