China and Germany are enhancing their collaboration in business and technology, with a new report highlighting a shift towards mutual innovation and expertise exchange. This development was underscored at the China-Germany (China-Europe) Hidden Champions Forum 2026 in Beijing’s Shunyi district, which brought together over 400 business leaders and representatives from Europe and China.
The joint research report revealed that European companies are increasingly looking to expand their operations in China. Specifically, 38 percent of the European firms surveyed plan to boost their research and development investments in China, while 40 percent aim to grant their Chinese subsidiaries more autonomy from their German headquarters. This indicates a significant strategic shift in how these companies view their presence in the Chinese market.
Simultaneously, Chinese firms are also making strides in Germany. Prominent Chinese electric vehicle manufacturers like Li Auto and NIO have set up research and design centers in Germany, signifying a growing reciprocal technological partnership between the two nations. This two-way flow of innovation reflects a deepening relationship that extends beyond traditional business boundaries.
The forum also marked the introduction of a public service station designed to assist businesses in overcoming technical trade barriers. Additionally, a new initiative was launched to encourage German and European companies to engage with Beijing’s economic and technological cooperation zone in Shunyi, further cementing the city’s role as a hub for international science and technology.
Tang Wenhong emphasized Beijing’s commitment to fostering this cooperation, highlighting plans to attract more innovative companies to the city. By doing so, Beijing aims to bolster its status as a leading center for science and technology on the global stage, reinforcing the collaborative spirit between Chinese and German enterprises.