China and Germany are enhancing their business and technology partnerships, with innovation now being exchanged in both directions, as opposed to predominantly flowing from Germany to China. This development was highlighted in a new joint research report presented during the China-Germany (China-Europe) Hidden Champions Forum 2026, held in Beijing’s Shunyi district. The event attracted over 400 business executives and representatives from both Europe and China.
The report indicates that European companies are increasingly committed to expanding their footprint in China. Notably, 38 percent of the European firms surveyed expressed plans to boost their research and development investments in China. Additionally, 40 percent intend to grant more operational autonomy to their Chinese branches, allowing them to function with greater independence from their German headquarters.
On the flip side, Chinese companies are also making significant strides in Germany. Prominent Chinese electric vehicle manufacturers, such as Li Auto and NIO, have set up research and design centers in Germany, underscoring the burgeoning two-way technological collaboration between the two nations.
Further cementing this cooperation, the forum witnessed the launch of a public service station aimed at helping businesses tackle technical trade barriers. Additionally, a new partnership initiative was introduced to encourage German and European companies to engage more actively in Beijing’s economic and technological cooperation zone in Shunyi.
In light of these developments, Tang Wenhong emphasized Beijing’s commitment to fostering stronger ties between Chinese and German businesses. The city plans to continue attracting innovative companies to bolster its status as an international hub for science and technology.