Trade giants: Today's need is sustainability
Updated: 2012-02-02 07:50
By Te Kan (China Daily)
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Economic relations between Germany and China remain dynamic as trade from both sides continues to grow.
The trade volume between the two countries in 2010 exceeded 130 billion euros ($166.4 billion).
Germany is China's leading trade partner in Europe by far, while the country is the No 1 economic partner in Asia for Germany.
Germany and China appear to be complementary economies for each other.
Germany offers high quality investment in key industries that help boost the growing economy of China and meet the increasing demand for sustainable development.
The German government launched its "High-Tech Strategy 2020" to create leading markets, intensify cooperation between science and industry, and make progress on general conditions for greater innovations in Germany.
Germany seeks to become the leading provider of science- and technology-based solutions in key areas.
Meanwhile, in its recent 12th Five-Year Plan (2011-15), the Chinese government emphasizes special importance to sustainable, qualitative economic development rather than quantitative growth.
Large German companies operating in the chemical industry, car manufacturers and engineering companies have realized early the great potential of investing in China.
Even during the financial crises, many German enterprises continued to invest in China.
They remained active in China for many years, and became an integral part of the Chinese economy as they define themselves as being "Chinese".
They invest in Chinese infrastructure and industry, and in the Chinese society by training skilled labor and offering employment opportunities.
The German government welcomes Chinese investment in their country.
Chinese investments in Germany remain relatively small in comparison. Germany has a cumulative investment in China of some 21 billion euros, whereas China to date only invested around 600 million euros in Germany.
Germany and the European market offer numerous opportunities for profitable and technologically attractive investments.
Chinese foreign direct investments in Germany have already risen significantly since 2002 with the easing of regulations for foreign direct investments.
China has become the second largest investor in Germany in terms of the number of projects, and about 50 percent of Chinese foreign direct investment in the EU flows into Germany.
This reveals the increasing inter-dependence of the two economies.
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