China’s extensive market, characterized by a robust industrial chain and dynamic technological innovations, presents significant growth opportunities for German small and medium-sized enterprises (SMEs), according to Ling Ji, the vice minister of commerce and deputy international trade representative for China.

This statement was made during a meeting held in Beijing on May 27, 2025, with a delegation of German SMEs.

Ling expressed that there is hope for continued cooperation between China and Germany to uphold free trade and maintain the stability of global industrial and supply chains.

This sentiment was echoed by Walter Döring, the leader of the German SME delegation, who noted the attractiveness of the Chinese market and committed to assisting more German SMEs, particularly the 'hidden champions'—successful yet lesser-known enterprises—to enter China.

Research indicates a sustained commitment from German businesses to the Chinese market, with over half of the surveyed German companies planning to increase their investments in China over the next two years.

This was highlighted in a report released at the conclusion of a three-day forum focused on Sino-German industrial cooperation.

The report revealed that these 'hidden champions' have the potential for more than double the current growth opportunities within China.

Experts, such as Jian Junbo from Fudan University, underscored the advantages of integrating into China’s comprehensive supply chain.

He noted that aligning with relevant suppliers and distributors could enable these SMEs to significantly reduce operational costs and bolster their competitiveness.

Historically, German enterprises have been a prominent source of investment in China.

Reports from the Ministry of Commerce show that actual German investment grew by 12.3 percent in the first four months of this year.

Major companies have recently intensified their investment efforts, including Volkswagen Group, which established its largest research and development center outside Germany in Hefei, and BMW Group, which invested 20 billion yuan ($2.78 billion) in its Shenyang plant.

Bayer Group also announced a 600 million yuan investment for a new supply center in Jiangsu Province.

The report mentions that China remains committed to high-standard opening-up and continuously improving its business environment, making it increasingly attractive to both multinational corporations and SMEs.

Amid a global climate marked by rising protectionism, many European companies are seeking new investment opportunities in China.

The cooperation between China and the European Union has been bolstered in recent times, with frequent engagements between high-level officials.

Chinese Commerce Minister Wang Wentao is scheduled to meet with EU Commissioner for Trade and Economic Security Maros Sefcovic at an upcoming WTO ministerial meeting in Paris in early June, signifying the ongoing momentum in bilateral cooperation.

This year marks the 50th anniversary of diplomatic relations between China and the EU. At a recent celebratory event, Cai Run, head of the Chinese Mission to the EU, noted the increased global significance of China-EU relations, emphasizing that stability in these relations can bring greater certainty to an increasingly volatile world.