Mercedes-Benz CEO Ola Kaellenius has cautioned the European Union against adopting protectionist measures towards China, highlighting potential adverse impacts on Europe’s economic landscape. Kaellenius’ stance has garnered support from numerous German companies, as reported by Reuters on Thursday. A recent survey by the German Chamber of Commerce in China revealed that 78 percent of German businesses operating in the country anticipate consistent growth within their sectors over the next five years.
Nearly half of the respondents foresee annual growth rates ranging from 5 to 20 percent in their respective sectors within China. Notably, 90 percent of large companies expressed optimism, recognizing significant growth potential within their industries. Xu Daquan, President of Bosch China, emphasized China’s continued significance as a vital market and a focal point for innovation and research within the Bosch Group. Despite prevailing challenges, Bosch China achieved sustainable growth in 2023, with sales reaching 139.1 billion yuan (approximately US$19.5 billion), marking a 5.2 percent increase from the previous year.
With approximately 58,000 employees in China, Bosch Group is committed to strengthening its market position through continued investment, enhancement of local production and research capabilities, fostering local partnerships, and improving customer and market services. A study conducted by the German Economic Institute underscored the escalating German direct investment in China, reaching a record 11.9 billion euros (US$12.7 billion) in the preceding year, reflecting a 4 percent surge from the previous year.
These findings indicate a substantial increase in German companies’ direct investments in China, constituting 10 percent of Germany’s total foreign investments. The cumulative investment over the past three years mirrors the total investment made in the six-year period from 2015 to 2020, exemplifying the growing strategic importance of the Chinese market for German businesses despite concerns over EU protectionism.