At the G20 Hamburg Summit held on July 7-8, Chinese and German leaders successively expressed their stance of adhering to openness and inclusiveness and opposing protectionism.

But soon after the summit, the German Federal Cabinet passed the ninth amendment to the German Foreign Trade Regulation submitted by the German Federal Ministry of Economic Affairs and Energy. It is generally believed that this amendment will damage the overall investment environment of non-EU companies in Germany.

Is it openness or protection? The German Federal Ministry of Economic Affairs and Energy, the Federal Foreign Trade and Investment Agency, and the Guangzhou Representative Office of the German Chamber of Commerce and Industry recently held an investment promotion meeting for eastern Germany in Guangzhou, giving the answer.

Klaus Dornbusch, the special envoy of the German Federal Ministry of Economic Affairs and Energy for the new federal states (the new federal states refer to the six eastern German states including Berlin), said in an exclusive interview with a reporter from Southern Daily that Germany welcomes Chinese investment very much. Investment from Guangdong's manufacturing industry is an indispensable part of the electronic information industry and automobile industry in eastern Germany, and even Germany's Industry 4.0. He repeatedly emphasized that "since the establishment of diplomatic relations between China and Germany in 1972, the German government has never rejected any investment from China!"

The German government has never rejected investment from China

Southern Daily: At the G20 Hamburg Summit, China proposed to build a more open world economy and jointly expand the pie of the world economy. What is Germany's view?

Klaus Dornbusch: The two countries have a high degree of overlap in interests and a common vision in globalization. The cooperation in the manufacturing industries of the two countries also has many points of convergence. We should work together to make the pie of the world economy bigger.

Germany is an open economy. For global investors, there are no restrictions on industries (except those involving national security, such as military industry, finance, public security, etc.), regions, or countries. Last year, the acquisition of Kuka by Guangdong Midea Group attracted global attention. Kuka has particularly advanced technology in the field of robots, and this acquisition did cause some Germans to worry. However, the German government sincerely welcomes foreign companies to invest in Germany through mergers and acquisitions, and also welcomes Chinese companies to participate in Germany's economic development in this way.

Since the establishment of diplomatic relations between China and Germany in 1972, the German government has never rejected any investment from China! I think this is Germany's unique advantage over other countries. The openness of the German market is the world's leading. On this basis, German companies also hope to obtain equal market access opportunities in China.

Nanfang Daily: What is the attitude of the German federal states towards Chinese investors at present?

Klaus Dornbusch: The German federal states are very interested in strengthening investment cooperation with China. Bavaria, famous for its BMW car manufacturing, is attracting Chinese companies to invest in local R&D and innovation projects. More than 1,000 Chinese companies have settled in North Rhine-Westphalia, and the cooperation in the fields of Industry 4.0 and digital economy has achieved remarkable results...

Germany is one of the most productive European countries, with 80% of the workforce having received vocational training or having a university degree. Governments at all levels in Germany provide a number of investment incentive policies for greenfield investment projects based on the scale of investment, investment type and investment location, which can be enjoyed by both foreign and domestic investors, mainly in the form of cash subsidies.

 In the past six years, Germany Trade & Invest has helped more than 180 Chinese companies to invest and settle in Germany. The agency provides Chinese investors with free services for the entire decision-making process, from industry analysis, market entry analysis, business and tax information to business and labor law information, incentives and financing information.

China also highly recognizes Germany's investment environment. Since 2013, the Chinese Academy of Social Sciences has published the "China Overseas Investment Country Investment Rating" every year. Germany has received the highest rating for four consecutive years and has the lowest risk level.

Nanfang Daily: What is Germany's attitude towards participating in the "Belt and Road" initiative?

Klaus Dornbusch: The Belt and Road Initiative is welcomed by the German government. The initiative will expand the total import and export volume and cooperation in various fields between the two countries. Infrastructure construction in countries along the route is becoming increasingly popular. German companies hope that the initiative will provide fair and equal market access opportunities to participate in these infrastructure projects.

Chinese companies can cooperate extensively with German scientific research institutions

Nanfang Daily: In recent years, Chinese companies have increasingly acquired German high-tech companies, which has caused concerns in Germany. How should Chinese companies respond?

Klaus Dornbusch: Different from the view of Chinese enterprises, the German government has actually been open to this form of cooperation as a whole. In addition to China, enterprises from many other countries are acquiring German technology enterprises. Summarizing the situation in recent years, many German enterprises that have been acquired have indeed benefited from this and are developing better and better.

The German government provides financial support for scientific research projects of some small and medium-sized enterprises. Taking eastern Germany as an example, enterprises can get a maximum of 35% of the research and development funds. If Chinese enterprises want to obtain technology, they can cooperate with German scientific research institutions that conduct high-tech research, jointly invest in research and development, and apply for patent protection to promote the marketization of scientific research results.

Nanfang Daily: How can Chinese manufacturing enterprises improve their innovation capabilities and get rid of the dilemma of being at the low end of the value chain for many years by investing in Germany?

Klaus Dornbusch: First of all, enterprises of the two countries should first cooperate in the field of science and technology, which can improve the innovation capabilities of Chinese enterprises. In this regard, Guangdong enterprises are the pioneers.

Secondly, many scientific research institutions in Germany can support the innovation of Chinese enterprises. For example, universities such as Dresden University of Technology in eastern Germany have strong scientific research capabilities on the one hand, and have been cooperating extensively with enterprises from various countries for many years on the other hand. It is not only more direct and convenient for Chinese enterprises to directly establish cooperation with such scientific research institutions, but also eligible projects will receive loans and other financial subsidies from the German government.

Any Chinese enterprise that invests and establishes a subsidiary in Germany can obtain the same resources and rights as German enterprises. In the field of scientific research, German governments at all levels use 3% of GDP to support R&D activities every year, with an annual investment of up to 70 billion euros. Germany has also recently launched a "high-tech strategy" to integrate the scientific research resources of all government departments and invest 4 billion euros each year to support cutting-edge technology.

The leading industries of China and Germany are highly compatible

Nanfang Daily: Which industries in Guangdong does Germany need investment from the most? In what aspects can the two sides complement each other's strengths and benefit each other?

Klaus Dornbusch: We trust Guangdong enterprises. Well-known Guangdong enterprises such as Huawei and ZTE have invested and developed in Germany for many years, and will establish scientific research centers in Germany in the future.

From a macro perspective, the key industries in China's "13th Five-Year Plan" are highly consistent with Germany's leading industries. "Made in China 2025" corresponds to Germany's "Industry 4.0", and the two are highly complementary. Guangdong enterprises have advantages in information and communication technology, network infrastructure, sensors, automation and other fields. These advantageous industries and technologies are an indispensable part of Germany's realization of "Industry 4.0".

From the perspective of industry compatibility, Guangdong's electronic information, chemical, automobile, machine manufacturing, IT, microelectronic chips and other industries are more compatible with the eastern German industries. The electronic industry in eastern Germany ranks first in Europe, and the automobile manufacturing and chemical industries are also top in Europe.

After the reform and opening up, some high-tech and high-tech enterprises in Guangdong have strong strength. Germany's manufacturing and R&D strengths are internationally leading, so it is most suitable for high-tech enterprises to invest.

■One-sentence opinion

We support domestic enterprises that have the ability and conditions to carry out genuine and compliant overseas investment activities, and support overseas investment projects that are enterprise-based, market-oriented, and based on business principles and international practices. We especially support enterprises to invest in and operate the "Belt and Road" construction and international capacity cooperation projects.

——Yan Pengcheng, spokesperson of the National Development and Reform Commission

The West's impression of China's overseas investment is outdated. Today, China's overseas investment is no longer concentrated in the fields of energy and commodities, but has begun to shift to brands and technologies that will help its economic transformation and upgrading.

——A recent research report released by Macro  Polo, a think tank under the Paulson Institute of the University of Chicago.

According to analysis data provided by American think tanks, US exports to China have created 900,000 jobs in the country, while Chinese investment in the United States has provided 200,000 local jobs. Chinese companies have currently invested a total of US$20 billion in the Midwest, accounting for one-fifth of all US investment.

——Xu Chen, President of China General Chamber of Commerce - USA and President of Bank of China (USA)

China's self-positioning on the international political stage has changed, from a regional power to a world power. China will use multiple platforms such as the United Nations, the Group of Twenty (G20) Summit and the Shanghai Cooperation Organization to participate more extensively in global governance.

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