Interview: German "hidden champions" seek investment, cooperation in China

FRANKFURT, April 3 (Xinhua) -- A wide array of successful small- and medium-sized enterprises (SMEs) in Germany, known as "hidden champions," are strongly interested in investing and developing their business in China, a senior representative of a German forum said.

The term "hidden champion" is used to describe companies that have taken a leading position in their niche markets globally but are not well known to the public. Germany boasts over 1,300 hidden champions, accounting for around half of the world's total.

These successful SMEs want to follow the lead of German multinationals, which paved the way for creating development projects in the Chinese market, Yang Ming, chief representative in China of the Summit of World Market Leaders, told Xinhua in an exclusive interview.

The Chinese market appeals to German enterprises, not only because of its size but also due to the possibilities provided by regional initiatives such as the China-ASEAN Free Trade Area, which gives access to a broader market in other Asian countries, Yang said.

Each year, many leading German businesses, including those "hidden champions," meet at the summit, which was first initiated in 2011. As a senior member of the organizing committee of this event, Yang listens to the participants' feedback and needs regarding doing business in China.

A survey conducted by the organizers of the summit shows that German SMEs in the manufacturing, business, and trade sectors showed a strong willingness to enter the Chinese market.

"Their needs have yet to be satisfied," Yang noted. In some cases, German SMEs have met with potential partners in China, only to find it difficult to push ahead with their investment plan in the country due to insufficient follow-up talks after initial meetings.

A report published by the German Institute for Economic Research showed that China continues to be one of the favorite destinations for investments from German companies. The total direct investment of German companies in China hit a record high of 11.9 billion euros (12.89 billion U.S. dollars) in 2023. The aggregate investment of German companies in China made up 10.3 percent of their overall overseas investment in 2023, the highest level since 2014.

Based on the needs of German SMEs, the organizer will tailor specific plans to provide "one-stop" services to facilitate the investment plans of German SMEs in China, according to Yang.

With deeper integration of China's innovative power and Germany's solid industrial base, the two sides will be able to achieve mutual benefit and coordinated development, Yang said.