Which of the many leading industrial sectors in Germany are particularly attractive to Chinese entrepreneurs? Which industries can be invested in Germany to maximize the income of Chinese entrepreneurs? In the process of talking with Chinese investors, we found that Chinese companies have a unique trend in Germany. The first is the traditional German industrial strengths such as machinery and equipment manufacturing; the other is the emerging high. Technology industries such as information and communication technology and renewable energy.

When it comes to Germany's real industrial engines, everyone knows the world's leading industries in Germany, such as automotive, metalworking, chemicals and pharmaceuticals. But in fact, behind these industry giants, it is the manufacture of various machinery to drive the production of various industries. According to fDi Markets's statistics in 2009, China's investment in Germany in 2008 was 20,6% in terms of machinery and equipment, with the highest proportion. Many Chinese companies have achieved results in this area. In recent years, Dalian Machine Tool Plant, Hangzhou Machine Tool Group, Shanggong Shenbei and Beijing No. 1 Machine Tool Plant have all invested in Germany. For example, Shanggong Shenbei successfully acquired Dokpu Adul, a century-old sewing machine factory in 2005, and moved the management and R&D center to Germany to revitalize this bankrupt company. After Shanggong Shenbei invested in Germany, the German factory was not closed. Instead, it took full advantage of Germany's high-end technology and excellent brand and marketing network to free itself from the dilemma of Chinese companies occupying only the low-end market and turn to the high-end market.

The reason why Chinese investors have a good time in the industry is simple, because the German machinery and equipment industry is first class in the world. Its strength comes from its long-standing tradition of tradition and technological development, its diverse industrial base and its strong support for the industry. In 2008, the value of mechanical equipment in Germany reached 195 billion euros, an increase of 9%, and the local market capacity reached 103 billion euros. Its 6,000 companies have nearly 965,000 skilled employees. Cui Zhicheng, the director of the Beijing No. 1 Machine Tool Plant, which successfully invested in Wadley Hicksburg, Germany, commented: “The German machinery manufacturing industry is recognized as an excellent industry in the world. It has a very deep heritage and its industry. The quality of the workers is very high. In addition, Germany's political and economic environment is stable and the product quality is excellent. This is the factor that I decided to invest in Germany."

Chinese investors are not only looking at the traditional German industry, but some high-tech industries such as information and communication technology are also favored by Chinese investors. Especially some emerging private companies. China's two major information and communication technology giants in China, Huawei and ZTE, have invested in Germany. In particular, Huawei has expanded its business in Germany and moved its European operations center to Düsseldorf. It has 8 permanent establishments in Germany and more than 500 employees. In the past two years, Huawei has developed rapidly in Europe and won the O2 network upgrade project of German mobile operators. It has successfully entered the important market of Germany. In August 2008, Huawei established an innovation and demonstration center in Darmstadt, Germany, which was an important step in consolidating the German market. Mr. Peng Wei, the general manager of Huawei Germany, believes that Huawei chose Germany because it has many technology-leading operators and many business opportunities. In addition, Germany is located in the center of Europe and is a transportation hub. It is very convenient, enabling Huawei to quickly serve its customers and continuously improve its competitiveness and after-sales service capabilities.

Not only that, Germany ranks among the best in Europe in the information and electronic communications industry, accounting for 19% of the EU market share. Germany is one of the world's largest exporters of information and communication technology products and offers a comprehensive and integrated logistics infrastructure that integrates advanced transmission networks with modern information and communication, information technology and telecommunications systems. These are all excellent prerequisites for the development of China's information and communication companies. At the same time, another giant in the industry, ZTE, has also settled here. Dr. Zhang Zhigang, the general manager of ZTE Germany, told us that ZTE’s investment in Germany is not a temporary development: “Europe is the forefront of the development of electronic communications, especially in Germany, which is an important bridgehead for our industry. Investment in Germany for our customers Very beneficial, for the business itself, this is an indispensable condition for long-term development."

In recent years, with the promotion of China's sustainable development policy, some companies that are engaged in renewable energy also aim at the German market. Both China and Germany are major players in the renewable energy market. This industry has seen many successful examples of Chinese companies investing in Germany. Chinese companies particularly want to leverage Germany's expertise and infrastructure in this industry to increase their sales and open up new markets in Europe.

China Building Materials Group Corporation is a good example. It is a wind energy technology manufacturer from China. In 2006, it invested in the acquisition of the wind turbine factory in Thuringia, the new establishment of SINOI, and turned the plant into a profit. Ms. Ren Guifang, the company's president, said: “SINOI hopes to use the German-made technology from Thuringia to develop the European wind energy market.” China National Building Materials Group has taken a fancy to the company's R&D capabilities and Germany's position as the world's largest wind energy market. 37% of the world's wind turbines and components are produced in Germany. Germany ranks first in the world in the field of photovoltaics and wind energy. In addition, the German government promotes the promotion of renewable energy law, making the German renewable energy field very attractive.

Whether it is a traditional industry or a new industry, Chinese entrepreneurs can only get the most benefit if they combine their own fields with their industrial strengths. Before determining the investment field, Chinese investors should be thoughtful and consulted by professional companies. For Chinese companies interested in investing in Germany, they can directly ask the German Trade & Invest. The agency is a company of the German Federal Government whose main task is to provide advice and support to foreign companies wishing to enter the German market. The department's industry analysts will provide market analysis, strategic planning, investment and development projects, and legal and tax advice to Chinese investors interested in Germany. The consulting services it provides to investors are free.

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