Chinese companies have of late been viewing Germany as a springboard for the European market while making key mergers/acquisitions with/of European companies. Germany now too, has been utilizing various opportunities to ingratiate itself with Chinese consumers and companies.
While a German presence in China is nothing new (Siemens can trace their Nanjing connection back for a century or more), it can be said that the two countries relationship is now much less unilateral. Both nations have more in common than a simple desire to increase business gains; appearing very pragmatic and with a strong emphasis on business centered foreign policy. The two nations also have the benefit of being in ownership of strong economic and industrial bases, while simultaneously maintaining consistent surpluses.
Germany benefits by acquiring capital, access to Asian markets and economies of scale production, while China gains receipt of German technology, expertise, branding, and distribution. In 2010, Jiangsu Jinsheng Holdings, one of the top 100 private technical enterprises in Jiangsu province, managed to acquire a 50 percent stake in EMAG Holding, a leading German machine tools maker. The result was a 30 percent increase in EMAG Holdings.
In history, one of the most celebrated examples of German/Chinese cooperation is to be found in John Rabe, a celebrated hero in Nanjing. During the Nanjing Occupation, the German businessman worked to protect Chinese civilians from Japanese military aggression. Rabe helped to establish the Nanjing Safety zone, which protected approximately 200,000 Chinese individuals. He also sheltered 650 Nanjing locals in his own home and used his affiliation with the Nazis to interfere in looting and pillaging by Japanese soldiers.
Moving forward, in 1989, Nanjing University, in association with the University of Göttinge established the Sino-German Institute for Legal Studies. The institute’s main goal is to commence and maintain dialogue between German and Chinese legal spheres. Due to its significant contributions to Chinese and German legal studies, the academic institution enjoys a highly respected reputation in both countries.
With stable roots in history, this continually expanding German-Chinese friendship is now becoming increasingly successful in additional fields; industries hitherto not a specialty of either. China is assisting Germany to develop their new energy sector while Germany is helping China with vocational training. MTI Consultancy is an international organisation management consultancy based in Germany, founded in 1989, that now has an office in Nanjing in addition to those in Beijing and Shanghai. The company has seen success in China in bringing its German know-how in the field of organisation development to multi-nationals operating in China with a Chinese workforce.
Speaking recently with Nanjing Expat, MTI Managing Director Hans-Peter Machwürth, elaborated on the German know-how his firm brings to the table; “We create a development program over 18-24 months months with different steps; what is the client’s situation, what is the goal and what we can do to bring their strategy to life.”
Challenges not withstanding, and considering the way that Germany’s relationship with China has developed over the last 100 years, the two nations’ partnership is set for far more unprecedented strategic growth in the future. Unlike many countries, as a reflection of the importance of the China-Germany relationship, it is worth noting German Chancellor Angela Merkel makes annual visits to China, as did her predecessor.
