Economic Watch: East China City’s Longstanding Partnership with Germany Paves Way for Deeper Ties
In the vibrant heart of East China’s Anhui Province, Hefei, a city that marries tradition with innovation, has recently become a focal point for German enterprises. This burgeoning interest is a testament to the city’s dynamic growth in emerging industries and its long-standing partnership with Germany.
Last month, notable German delegates, including Matthias Machnig, Vice President of the SPD Economic Forum—an independent association of German entrepreneurs—visited Hefei. Their itinerary included tours of new energy vehicle (NEV) factories and discussions with local entrepreneurs in cutting-edge fields such as artificial intelligence and bio-medicine. Through these interactions, the delegation explored the vast industrial and manufacturing potential that Anhui Province offers.
Machnig’s observations highlight an anticipated deepening of industrial, technological, and cultural exchanges between Germany and Anhui. These expectations build on a relationship that started in 1984 with a cooperation declaration between Anhui and the German state of Lower Saxony. This partnership is among the most enduring regional collaborations between China and Germany, and it continues to flourish today.
Recent years have seen a significant increase in the visits of German entrepreneurs to Hefei, sparking numerous industrial collaborations. One of the most notable investments announced recently came from Volkswagen Group China, which committed to investing 2.5 billion euros in expanding its innovation hub in Hefei. This investment underscores Volkswagen’s ambition to bolster its innovative capabilities in China significantly. Ralf Brandstätter, Chairman and CEO of Volkswagen Group China, indicated that this expansion would enable the Hefei innovation hub to bring technologies to the market around 30% faster than before. Volkswagen China’s Technology Co., Ltd., headquartered in Hefei, stands as the company’s paramount research and development center outside Germany, playing a crucial role in its strategy for production localization.
Engagement and communication between Hefei and Germany have been mutual and fruitful. In 2023, a delegation from Hefei, led by government officials, visited several German cities, including Hannover, Wolfsburg, Berlin, and Stuttgart. During these visits, they engaged with top representatives from companies like Volkswagen, Continental, Porsche, and Bosch, aiming to bolster collaboration.
Jochen Leonhardt, a board member of the German Association for Small and Medium-sized Businesses (BVMW), shared his experiences during a visit to Hefei. He remarked on the city and province’s rapid development, viewing Anhui as a prime location for investment and growth. Leonhardt’s observations affirm the region’s attractiveness to foreign investors, particularly from Germany.
The enduring partnership between Hefei and Germany exemplifies how international cooperation can serve as a foundation for mutual growth and development. As these ties deepen, they pave the way for a future where innovation and collaboration transcend borders, promising a brighter horizon for both parties involved.
