Industrial cooperation helps drive growth

Germany's Industry 4.0 strategy will push Chinese companies in many emerging as well as traditional sectors to adopt trends in digital, intelligent, service-oriented and platform-based development to compete with global rivals, business leaders said.

Many of China's manufacturers, however, are transitioning from the 2.0 to the 3.0 level of industrial development.

So, carrying out the integration and application of those global trends-and the resulting innovation－needs to be done within the context of China's situation, according to Feng Yaoxiang, spokesman for the China Council for the Promotion of International Trade in Beijing.

China has been implementing its Made in China 2025 plan to modernize manufacturing and boost growth through technological upgrades, knowledge-based industries and environmentally friendly development.

The German industrial giant Robert Bosch GmbH has been seeking partnerships in China to drive strategy and build projects in support of Made in China 2025 and China's Internet Plus strategy to integrate the internet and traditional industries, said Peter Tyroller, a Bosch board member responsible for the Asia Pacific.

"China's growing demand for high-value-added products and services, especially for its automobiles, home-related service businesses and manufacturing projects, offers many growth points," Tyroller said.

Bosch and the Chinese search engine company Baidu have signed a strategic cooperation agreement on smart mobility in China. Bosch will be involved in Baidu's Apollo project, which aims to provide open, comprehensive and reliable software for the development of automated vehicles.

Bosch will contribute sensors and its Bosch Road Signature mapping service for vehicle localization. Both companies will provide technical expertise to support the drafting of legislation relating to automated driving in China.

"Investment in technology-based services and trade in high-end products－such as cloud systems, smart manufacturing projects and sensors, and industrial automation goods－is set to account for an even greater proportion of bilateral business ties," said Fang Jian, managing partner for China of global law firm Linklaters LLP.

Chinese companies pumped more than $12.56 billion into Germany last year, investing in 281 projects and creating over 3,900 jobs in the country. Such investment has started to focus more on acquiring high-tech companies such as leading robotics manufacturer Kuka AG, which received a takeover offer from Chinese consumer products company Midea Group in 2016.

Joe Kaeser, chief executive officer of Siemens AG, said China is making progress on the path to becoming an advanced and competitive economy, but it will take time for these changes to have an impact. Patience and consistency will be required, as well as continuous reforms along the way, he said.