The Chairman of the German-Chinese Business Council, Kevin Xu (Clemens S. Hütte), stated in a recent interview that China's economy has entered a new phase of high-quality development, driving the domestic economy towards an upgrade centered on efficiency and innovation, and reshaping the global industrial landscape. This provides growth opportunities for German companies and injects long-term momentum into Sino-German economic and trade relations as well as global economic stability.
Xu expressed strong anticipation for China's upcoming 15th Five-Year Plan. He noted that against the backdrop of profound changes in the global competitive landscape and the accelerated restructuring of technology and industrial systems, China's focus on innovation as the core driver of economic growth is crucial for ensuring long-term expansion and enhancing international competitiveness. The transition towards high-quality development represents a necessary path for a maturing economy, signifying greater emphasis on structural optimization and long-term quality rather than just growth speed. "China is achieving this transformation with a more proactive and forward-looking approach," Xu remarked.
Xu highlighted that China's high-quality economic development brings new opportunities globally. On one hand, the upgrading of the Chinese market will create new demand structures and broader cooperation spaces; on the other hand, the continuous enhancement of innovation capabilities will reshape the global industrial landscape. He indicated that, in the long run, these changes will incentivize all parties to accelerate their pace of innovation, and "the ultimate beneficiary will be the global economic system."
Openness is a distinctive characteristic of contemporary China. Xu particularly emphasized that, in an international context marked by rising protectionism and increasing trade frictions, China's stance on promoting an open world economy and actively advocating for international cooperation has become increasingly important. He pointed out that China's high-level opening-up will provide significant support for the world economy.
Xu stated that Sino-German economic and trade relations are a practical manifestation of mutually beneficial openness. He noted that China once again became Germany's largest trading partner in 2025, a result of deep industrial complementarity. "Germany is an export-oriented manufacturing economy, while China is a vast industrial market and innovation hub," he explained. German companies produce locally in China to serve the Chinese market, while Chinese intermediate products are integrated into Germany's manufacturing system, resulting in a highly intertwined supply chain network developed over many years.
Xu mentioned that the Chinese market is regarded by German companies as a strategically vital core market. "Currently, over 5,000 German companies have investments in China, and approximately 3,000 Chinese companies are invested in Germany, with substantial employment closely linked to this two-way investment." The deeply intertwined investment and industrial links underscore the solid foundation and practical dynamism of Sino-German economic cooperation. This long-term strategic layout is also closely related to the evolving role of China within the global industrial system.
Xu observed that China has transitioned from being a global manufacturing base to becoming a core market and a high-tech innovation center. "German companies such as
Based on this, German companies' recognition of China's innovation capacity is continually deepening. "Multiple surveys indicate that a growing number of German enterprises view Chinese companies as innovation leaders and wish to expand cooperation with Chinese partners. This is not only to maintain competitiveness within the Chinese market but also to share innovation outcomes globally," Xu said. He added that many German firms utilize R&D centers in China to shorten product cycles and are exploring collaborations with Chinese companies to develop third-party markets.
Xu believes that China, as the world's second-largest economy, is no longer just a participant but an active creator within the international economic system. He highlighted China's support for multilateral frameworks centered on the World Trade Organization and the United Nations, providing crucial underpinning for the global economic order. Citing global climate change efforts as an example, Xu stated that global targets for addressing climate change "cannot be achieved" without China's involvement. He noted that China remains at the forefront technologically and in scale within renewable energy and electric vehicle sectors.
Furthermore, China not only plays a key role in existing international mechanisms but also expands development financing channels through platforms like the Asian Infrastructure Investment Bank, forming more influential cooperative networks among Global South countries.
In Xu's view, against a backdrop of rising global uncertainty, stable, rational, and predictable cooperation is particularly valuable. He concluded that structural complementarity will provide a solid foundation for Sino-German economic and trade relations and will inject greater certainty and stability into the world economy.
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