China and Germany are enhancing their business and technology partnerships, with innovation now moving both ways, according to a recent joint research report presented in Beijing. This marks a shift from the traditional flow of expertise largely from Germany to China. The report was released during the China-Germany (China-Europe) Hidden Champions Forum 2026, an event held in Beijing’s Shunyi district that gathered over 400 executives and business representatives from Europe and China.
The research highlighted that a significant number of European companies are looking to expand their operations in China. Specifically, about 38 percent of surveyed European firms expressed plans to boost their research and development investments in the region. Additionally, 40 percent of these firms intend to give more autonomy to their Chinese branches, allowing them greater operational independence from their German headquarters.
In a reciprocal move, prominent Chinese electric vehicle manufacturers such as Li Auto and NIO have set up research and design centers in Germany. This development underscores the increasing two-way technological collaboration between the two nations. The growing cooperation is not only limited to business initiatives but also includes strategic efforts to tackle technical trade barriers.
During the forum, a public service station was launched to assist businesses in overcoming these barriers. Furthermore, a new partnership initiative was introduced, encouraging German and European companies to engage with Beijing’s economic and technological cooperation zone in Shunyi. This initiative aims to foster deeper economic ties and technological exchanges between the regions.
According to Tang Wenhong, Beijing is committed to fostering further cooperation between Chinese and German businesses. The city plans to attract more innovative companies, reinforcing its position as an international hub for science and technology. This strategic push is designed to consolidate Beijing’s standing in the global market, promoting enduring economic and technological links.