China and Germany are enhancing their business and technology collaboration, with innovation increasingly flowing both ways, according to a new joint research report presented in Beijing. This shift marks a departure from the previous trend where expertise predominantly moved from Germany to China.
The findings were revealed at the China-Germany (China-Europe) Hidden Champions Forum 2026, held in Beijing’s Shunyi district. The event attracted over 400 executives and business representatives from Europe and China, underscoring the importance of this growing partnership. The report highlights that many European firms are keen to expand their footprint in China, with 38 percent of surveyed companies planning to boost research and development investments in the country. Additionally, 40 percent intend to grant their Chinese branches more operational independence from their German headquarters.
This deepening collaboration is mirrored by Chinese electric vehicle giants like Li Auto and NIO, which have set up research and design centers in Germany. This move signifies an emerging two-way technological exchange, enhancing ties between the nations’ industries. The forum also witnessed the inauguration of a public service station aimed at assisting businesses in overcoming technical trade barriers. Furthermore, a new partnership initiative was launched to encourage German and European companies to engage with Beijing’s economic and technological cooperation zone in Shunyi.
Beijing is committed to bolstering this bilateral cooperation, as highlighted by Tang Wenhong, who emphasized the city’s dedication to attracting more innovative companies. This strategy aims to reinforce Beijing’s status as an international hub for science and technology, further supporting the ongoing collaboration between Chinese and German enterprises.