BEIJING: Mercedes-Benz CEO Ola Kaellenius warned the European Union on Thursday against any move to increase protectionism against China, as it would be destructive for an economic region like Europe, following the carmaker’s publication of its quarterly results.
Kaellenius’ voice resonates with many German companies. According to a survey released in late January by the German Chamber of Commerce in China, 78 percent of German companies expect consistent growth in their industry in China for the next five years.
Some 48 percent of the respondents anticipate a yearly expansion of 5 percent to 20 percent in their industry in China. Larger companies show greater optimism, with 90 percent of them seeing potential for growth in their industry, according to the survey.
China continues to be a key innovation and research hub for Bosch Group in addition to being a significant market, said Xu Daquan, president of Bosch China, adding that despite various challenges and uncertainties, Bosch China achieved sustained and robust growth in 2023.
In 2023, Bosch Group’s sales in China reached 139.1 billion yuan (about $19.5 billion), a 5.2-percent year-on-year growth, with nearly 58,000 employees in the country.
Bosch intends to maintain its stronghold in the Chinese market, make ongoing investments, improve local manufacturing and research and development skills, grow local alliances, and provide more effective customer and market services while fostering company expansion, said Xu.
A study by the German Economic Institute showed that Germany’s direct investment in China hit a record high last year, reaching 11.9 billion euros (roughly $12.7 billion), up 4 percent from the previous year.
German companies’ direct investment in China accounted for 10 percent of Germany’s total foreign investment in 2023, marking a significant increase. Their cumulative investment in China over the past three years matched the total investment in the six years from 2015 to 2020, according to the study. –The Daily Mail-CGTN news exchange item
