At the G20 Hamburg Summit held on July 7-8, Chinese and German leaders successively expressed their stance of adhering to openness and inclusiveness and opposing protectionism.

But shortly after the summit, the German Federal Cabinet passed the ninth amendment to the German Foreign Economic Regulation submitted by the German Federal Ministry of Economy and Energy. It is widely believed that this amendment will harm the overall investment environment for non EU companies in Germany.

Is it open or protected? The German Federal Ministry of Economy and Energy, Federal Agency for Foreign Trade and Investment, and German Chamber of Commerce Guangzhou Representative Office recently held an investment promotion event in Guangzhou targeting eastern Germany, providing answers.

Klaus Dornbusch, the special envoy of the German Federal Ministry of Economy and Energy for the new federal states (referring to the six eastern German states including Berlin), stated in an interview with Southern Daily that Germany welcomes Chinese investment very much. Investment from Guangdong's manufacturing industry is an indispensable part of Germany's eastern electronic information industry, automotive industry, and even Germany's Industry 4.0. He repeatedly emphasized, "Since the establishment of diplomatic relations between China and Germany in 1972, the German government has never refused any investment from China

Southern Daily reporter Su Li, intern He Yuanshuang

The German government has never refused investment from China

Southern Daily: At the G20 Hamburg Summit, China proposed to build a more open world economy and jointly expand the cake of the world economy. What is Germany's view?

Klaus Dornbush: The two countries have a high degree of overlapping interests and a common vision in globalization, and there are also many points of convergence in their manufacturing cooperation. We should work together to make the cake of the world economy bigger.

Germany is an open economy with no restrictions for global investors, regardless of industry (except for areas related to national security such as military, finance, public safety, etc.), region, or country. Last year, Guangdong's Midea Group's acquisition of Germany's KUKA attracted global attention. Kuka has particularly advanced technology in the field of robotics, and this acquisition has really aroused some doubts in Germany. But the German government sincerely welcomes foreign companies to invest in mergers and acquisitions in Germany, and also welcomes Chinese companies to participate in Germany's economic development in this way.

Since the establishment of diplomatic relations between China and Germany in 1972, the German government has never refused any investment from China! I think this is Germany's unique advantage compared to other countries, as the openness of the German market is world leading. On this basis, German companies also hope to have equal market access opportunities in China.

Southern Daily News: What is the current attitude of German federal states towards Chinese investors?

 Klaus Dornbush: German federal states have a strong interest in strengthening investment cooperation with China. Bavaria, known for its BMW car manufacturing, is attracting Chinese companies to invest in local research and development innovation projects. More than 1000 Chinese enterprises have settled in North Rhine Westphalia, and significant cooperation has been achieved in the fields of Industry 4.0 and digital economy

Germany is one of the most productive European countries, with 80% of the workforce having received vocational training or holding a university degree. The German government at all levels provides multiple investment incentive policies for green space investment projects based on investment scale, investment type, and investment location. Both foreign and domestic investors can enjoy them, mainly in the form of cash assistance, which is distributed in the form of free subsidies.

In the past six years, the German Federal Office for Foreign Trade and Investment has helped over 180 Chinese companies invest and settle in Germany. The agency provides free services for Chinese investors throughout the entire decision-making process, from industry analysis, market entry analysis, business and tax information to business and labor legal information, incentive measures, and financing information.

The Chinese side also highly recognizes Germany's investment environment. Since 2013, the Chinese Academy of Social Sciences has released the "China Overseas Investment National Investment Rating" every year, and Germany has received the highest rating for four consecutive years, with the lowest risk level.

Nanfang Daily: What is Germany's attitude towards participating in the "the Belt and Road" initiative?

Klaus Donbush: The "the Belt and Road" initiative is welcomed by the German government, which will expand the total import and export volume of the two countries and cooperation in various fields. Infrastructure construction in countries along the route is increasingly popular, and German companies hope that this initiative will provide fair and equal market access opportunities to participate in these infrastructure projects.

Chinese enterprises can collaborate extensively with German research institutions

Southern Daily: In recent years, Chinese companies have been increasingly acquiring German high-tech enterprises, which has raised concerns within Germany. How should Chinese companies respond?

Klaus Dornbush: Unlike Chinese companies, the German government has actually been open to this form of cooperation as a whole. In addition to China, many companies from other countries are also acquiring technology companies from Germany. In summary, in recent years, many German companies that have been acquired have indeed benefited and developed better as a result.

The German government provides financial support for research projects of some small and medium-sized enterprises. Taking eastern Germany as an example, companies can receive up to 35% of their R&D funding subsidies. Chinese companies wishing to acquire technology can collaborate with research institutions in Germany that conduct high-tech research, jointly invest in research and development, apply for patent protection, and promote the marketization of scientific research results.

Southern Daily: How can Chinese manufacturing enterprises enhance their innovation capabilities and get rid of the dilemma of being at the low end of the value chain for years by investing in Germany?

Klaus Dornbusch: Firstly, companies from both countries should start collaborating in the field of technology to enhance the innovation capabilities of Chinese enterprises. In this regard, Guangdong enterprises are pioneers.

Secondly, many research institutions in Germany can support innovation in Chinese enterprises. For example, universities such as Dresden University of Technology in eastern Germany have strong research capabilities and have been collaborating extensively with enterprises from various countries for many years. Chinese companies can directly establish cooperation with such research institutions, which is not only more direct and convenient, but also eligible projects will receive funding subsidies such as loans from the German government.

Any Chinese enterprise investing or establishing a subsidiary in Germany can obtain the same resources and rights as German enterprises. In the field of scientific research, German governments at all levels allocate 3% of their gross domestic product annually to support research and development activities, with an annual investment of up to 70 billion euros. Germany has recently launched a "high-tech strategy" that integrates all government research resources and invests 4 billion euros annually to support cutting-edge technologies.

High compatibility between the leading industries of China and Germany

Southern Daily: Which industries in Guangdong do Germany need the most investment from? In what aspects can both parties complement and benefit from each other's advantages?

Klaus Dornbusch: We trust Guangdong companies very much. Famous Guangdong companies such as Huawei and ZTE have been investing and developing in Germany for many years, and will also establish research centers in Germany in the future.

From a macro perspective, the key industries in China's 13th Five Year Plan have a high degree of compatibility with Germany's leading industries, and "Made in China 2025" corresponds to Germany's "Industry 4.0", with great complementarity between the two. Guangdong enterprises have advantages in the fields of information and communication technology, network infrastructure, sensors, automation, etc. These advantageous industries and technologies are indispensable for Germany to achieve "Industry 4.0".

From the perspective of industry compatibility, Guangdong's electronic information, chemical, automotive, machine manufacturing, IT, microelectronic chips, and other industries are relatively matched with those in eastern Germany. The electronic industry in eastern Germany ranks first in Europe, and the automotive and chemical industries are also among the top in Europe.

After the reform and opening up, some high-tech and high-tech enterprises in Guangdong have achieved remarkable strength. Germany's manufacturing and research and development capabilities are internationally leading, making it the most suitable for high-tech enterprises to invest.

One sentence viewpoint

We support domestic capable and qualified enterprises to carry out true and compliant outbound investment activities, support outbound investment projects with enterprises as the main body, market-oriented, commercial principles and international practices, and especially support enterprises to invest in and operate the "the Belt and Road" construction and international production capacity cooperation projects.

——Yan Pengcheng, spokesperson of the National Development and Reform Commission

The Western impression of China's overseas investment is outdated. Nowadays, China's overseas investment is no longer concentrated in the fields of energy and commodities, but is shifting towards brands and technologies that contribute to its economic transformation and upgrading.

——Macro, a think tank under the Paulson Institute at the University of Chicago in the United States Polo's recently released research report

According to analysis data provided by American think tanks, US exports to China have created 900000 job opportunities for the country, while Chinese investment in the US has provided 200000 job opportunities for the local area. The total investment of Chinese enterprises in the Midwest region of the United States has reached 20 billion US dollars, accounting for one-fifth of the total investment in the United States.

——Xu Chen, President of the American Chinese Chamber of Commerce and President of Bank of China (USA)

China's self positioning on the international political stage has undergone a transformation, moving from a regional power to a global power. China will use various platforms such as the United Nations, the G20 summit, and the Shanghai Cooperation Organization to participate more extensively in global governance.

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