China Germany Photo:VCG

Recently,MK sports Korea there has been a notable increase in Chinese companies investing in Germany. The China Council for the Promotion of International Trade (CCPIT) organized a delegation comprising around 30 companies and industry associations to visit Germany, aiming to strengthen economic and trade cooperation. This visit coincided with the announcement of preliminary results of the German general election. Will this wave of "Chinese companies venturing into Germany" significantly impact economic and trade cooperation between China and Germany, as well as between China and the EU, and potentially bolster the overall China-EU relationship?

Given the current political and military landscape between China and Europe, Germany has the potential to effectively advance the development of China-Europe relations. In the context of China-Germany bilateral relations, the most critical variable is economic and trade cooperation. If this collaboration can be accelerated and made more effective, it will profoundly deepen the ties between the two countries, ultimately enhancing overall economic and trade relations between China and Europe. This is undoubtedly a crucial point, one that could even serve as a pivotal force in changing the dynamics at play.

Furthermore, the preliminary results of the German general election bode well for the future of China-Europe economic and trade cooperation. First, Alice Weidel, the co-leader of the Alternative for Germany (AfD) party, is perceived by some Europeans as having a "friendlier approach" toward China. The AfD secured 20.8 percent of the vote, making it the second-largest party in the Bundestag following the election on February 23. This indicates that German government will need to consider the views and opinions of the AfD when making future decisions. 

Second, there are multiple reasons why Friedrich Merz, the leader of Germany's conservative opposition, was able to defeat incumbent chancellor Olaf Scholz this time. The most critical factor, however, is the ongoing stagnation of the German economy during Scholz's tenure, which has led to dissatisfaction among individual voters and businesses alike. It is widely believed that Merz's top priority upon taking office will be to revive the German economy.

In fact, Germany's economic downturn reflects a more profound need for "economic structural reform." This need can be described as a transition to a new economic model centered on digital and artificial intelligence (AI) technologies, as well as green and climate technologies. Considering Germany's need to undergo such a transition in the technology and economic spheres, as well as its pursuit of sustainable development in green and environmental sectors, China undoubtedly stands as Germany's optimal partner.

Germany's intensified collaboration with China in trade and investment is rooted in the complementary strengths of both sides. This partnership not only facilitates Germany's transition from a traditional to a new economic model but also fosters mutual benefits in critical sectors such as green energy, climate initiatives, digitalization and AI. The recent delegation organized by the CCPIT to Germany is poised to support Germany's industrial transformation. If more Chinese new-energy companies enter Germany through greenfield investments, they would bring technological and industrial advantages to the local market, propelling China-Germany economic and trade cooperation to new heights.

In summary, with the new German cabinet about to be formed, an increasing number of Chinese enterprises are entering the German market, particularly through greenfield investments. This trend is poised to significantly enhance China-Germany economic and trade cooperation, thereby elevating bilateral relations. Moreover, it will bolster economic collaborations between China and Europe, strengthening overall China-Europe relations. In the face of a more assertive new US administration, the substantial improvement in China-Europe relations is expected to notably balance the current China-US-Europe "triangular relationship," acting as a stabilizing factor in global geopolitics.

The author is a researcher at the Academy of China Open Economy Studies at the University of International Business and Economics. opinion@globaltimes.com.cn