According to a report by ZH based on a March 2nd news report from China Daily.
Germany’s industrial footprint in China has reached a new milestone in Taicang, Jiangsu province, where more than 560 German companies operate after over three decades of strategic development. The city is now widely recognized as a hub for German enterprises in China, showcasing successful integration into local supply chains and advanced manufacturing ecosystems.
Driving Industrial Upgrading Through Foreign Investment
Taicang’s success is attributed to a “German-style” focus on precision, quality, and long-term engagement, supported by a business environment that enables foreign firms to “enter, stay, and thrive.”
Key enablers include:
Dual-system vocational education linking industry and skills
German-standard living and work environment
Strong local government facilitation and investment services
Officials emphasize that integrating domestic and foreign industrial chains transforms foreign capital into a driver for local industrial upgrading, creating a virtuous cycle of economic growth and technology transfer.
Green and High-Tech Initiatives
A central pillar of cooperation is green development:
The Taicang High-Tech Industrial Development Zone has partnered with Germany’s GIZ to build China’s first Sino-German dual-certified zero-carbon park.
Past energy-efficiency programs in Taicang have saved over 25,000 MWh annually and reduced carbon emissions by 38,000 metric tons.
The new park will implement digital energy management and a carbon footprint accounting system, enabling export-oriented companies to secure ISO 14067 certification and carry a “green passport” for trade.
These initiatives aim to establish a “Taicang Model” for nationwide green industrial transformation.
Operational Outlook
Local companies are performing strongly:
Brose Taicang Automotive Systems reports full-capacity smart production lines
German firms are planning further investments, focusing on the growing Chinese market
Strategic alignment with local policies ensures long-term operational stability and supply chain resilience
Thomas Herrmann, general manager of Brose Taicang, noted:
“We want to focus more on the Chinese market this year and expand local production, bringing more production lines here.”
Implications for Global Investors
Supply Chain Integration: Taicang demonstrates effective foreign–domestic industrial cooperation
High-Tech Manufacturing: Smart production and robotics sectors show robust growth potential
Green Investment Opportunities: Zero-carbon initiatives offer avenues for sustainable investment
Long-Term Stability: Strong policy support and international-standard operations reduce operational risk
For investors, Taicang serves as a model for successful bilateral industrial collaboration, blending German operational standards with China’s growth and innovation ecosystem.