Optimistic about the Chinese market, European companies are strong and righteous

Recently, MAN Energy Solutions, a German company, joined hands with CSSC to provide a retrofit solution for two liquefied petroleum gas carriers of Tianjin Southwest Shipping, converting the engines on the ships into dual-fuel engines capable of running on liquefied petroleum gas . According to the plan, the ship will dock in January 2024. As an important way to maintain the value of ship assets in the next few years, dual-fuel conversion has been favored by many shipowners in recent years. The provision of refit services for Chinese shipowners this time is also a breakthrough for MAN Energy Solutions in this business field. Per Rud, senior vice president of the after-sales service department of the group, said that the cooperation between the company and CSSC was very successful, and the company will continue to strengthen its relationship with Chinese partners in the future.

The story of MAN Energy is a microcosm of the steady development of German and even European companies in China. A few days ago, at the European Enterprise Symposium held by the Ministry of Commerce, representatives of nine European enterprises present expressed their optimism about the Chinese market and will continue to increase investment in the future to promote the healthy and stable development of China-EU economic and trade cooperation.

Chinese and European companies have a wide range of investment and cooperation fields. According to the "Annual Report on Sino-German Enterprise Investment Cooperation 2022-2023" previously released by the China International Investment Promotion Center (เยอรมัน) (CIIPA), China and Germany will jointly tackle climate change, energy transition, and stabilize the supply chain for some time to come. Given the global challenges, enterprises of the two countries have broad prospects for cooperation on new issues such as renewable energy, green and low-carbon. Andreas Kullmann, head of the German Energy Agency, also said that there is huge potential for cooperation between Germany and China in areas such as energy efficiency, integrated systems, and future energy supply. Especially in the field of energy efficiency improvement and new industrial production, there is a strong demand for cooperation at all levels, and the two sides should work together to promote it. "I hope that German companies with good ideas can find markets and good partners in China," Kullmann said.

In fact, in the field of new energy, the three major German car companies Mercedes-Benz, BMW, and Volkswagen have all deployed electric vehicle production lines in China. For German companies with leading positions in the field of energy technology, China is a familiar and promising market. Germany's Harting Technology Group is a supplier of industrial connection technology for data, signal and power. The development of clean electric energy is inseparable from electronic connection technology. The company is committed to promoting key research and development in this field. Group CEO Philip Harting introduced that the company has developed in China for 30 years, and will further comprehensively strengthen localized development in the fields of production, sales/marketing, R&D innovation and service in the future. "In the next step, we will work with our Chinese market partners to develop new solutions to meet China's needs to become a technology leader."

In 2022, China will cancel the restrictions on the proportion of foreign capital in the automotive sector and the restriction that the same foreign company can establish two joint ventures in China to produce similar complete vehicle products. Realization of clearing, wider and greater opening up of the manufacturing industry, has made China's manufacturing industry more and more attractive to various resource elements. In 2022, the actual use of foreign capital in the national manufacturing industry will be 323.7 billion yuan, a year-on-year increase of 46.1%, of which the automotive sector will increase by 263.8%.

Franz Decke, President and CEO of BMW Brilliance, said that the Shenyang Lida plant has a total investment of 15 billion yuan, which is the largest single investment in the history of BMW Group in China. With the official opening of the Lida plant in 2022, the plant is breaking new ground with groundbreaking digital applications and strengthening the BMW Group's leading position in the global automotive manufacturing field. In the coming years, the Rida plant will also continue to expand the solar system to promote sustainable vehicle production.

Karl Deppen, member of the board of directors of Daimler Trucks and head of Daimler Trucks Asia, said that Mercedes-Benz trucks are now "Made in China". "China is the world's largest heavy-duty truck market with huge growth potential." He said that in 2022, the first batch of locally produced Mercedes-Benz trucks will be unveiled at the new production base in Huairou, Beijing, and Daimler trucks will open in China. Opening a new chapter, two localized product lines will meet the needs of Chinese customers, while the company's goal is to exceed customer expectations in China's heavy truck market.

Not only is the "magnetic attraction" of the manufacturing industry enhanced, but there are also many opportunities in China's consumer sector. There are many Spanish companies among European companies that are optimistic about this. This year marks the 50th anniversary of the establishment of diplomatic relations between China and สเปน. It has become the consensus of China and Spain to further strengthen friendly and mutually beneficial cooperation in the fields of economy and trade, which undoubtedly brings opportunities to many Spanish companies. Puig Group, a Spanish company that has gradually entered the field of vision of Chinese consumers, is one of them. In 2021, the Chinese market will become the fastest growing market of Puig Group in the world with a sales growth rate of 212%. Marc Puig, chairman and chief executive officer of the group, said bluntly that the sales performance of the tourism retail business of Hainan Duty Free Shop is "incredible", and China is expected to become one of the top three markets of Puig Group in the near future. At the same time, with Puig Group's investment in Chinese domestic fragrance brands, Puig Group is one step closer to launching localized products in the Chinese market, for which he is full of expectations.

This year, China will give priority to the recovery and expansion of consumption, and the market size will further expand. The motivation for foreign investment in China will undoubtedly be more sufficient. At the same time, a series of special policies introduced last year to promote investment in the manufacturing industry and encourage the development of foreign-funded R&D centers will be fully promoted this year, and a new batch of policy measures are also under planning by relevant departments. With the superimposition and force of existing policies and new policies, this will give more foreign-funded enterprises the courage to invest and develop in China.