BERLIN, Dec. 8 (Xinhua) -- Volkswagen has recently launched a new full-process R&D and testing center in the eastern Chinese city of Hefei.

As its first such facility outside Germany, this move represents a major change in the operational approach of German manufacturers in China. It also serves as a vivid illustration of the mutually beneficial cooperation between China and Europe.

By enabling a complete "concept-to-market" development cycle in one location, the center cuts vehicle development time by about one-third and allows the company to respond more quickly to one of the world's most dynamic auto markets. Bringing core R&D operations to China reflects not only market needs but also growing confidence in China's technological strengths and industrial ecosystem.

This shift is visible across German investment in China. Siemens Healthineers has recently launched a new MRI base in Shenzhen. Bosch has signed an agreement with the coastal city of Suzhou for a smart-vehicle project worth 10 billion yuan (1.4 billion U.S. dollars) over the next five years. These developments point to a broader assessment: China is emerging as a global innovation hub where R&D, manufacturing and application are deeply integrated.

Behind these moves is a systematic evaluation of China's long-term growth prospects. In recent years, China has expanded high-level opening-up, removed all foreign investment restrictions in manufacturing, advanced the development of free trade zones, improved visa facilitation and strengthened intellectual property protection, offering companies a stable and predictable environment.

According to a survey by the German Chamber of Commerce in China, more than half of polled German firms plan to increase investment in China over the next two years, and 92 percent say they have no plans to leave.

German companies are pursuing more than market share; they are aligning with China's push for new quality productive forces. German automakers are now testing new technologies and models in China earlier than elsewhere, accelerating coordination among R&D, manufacturing and the market. Cooperation in intelligent driving offers a telling example: Mercedes-Benz is working with ByteDance on AI applications, BMW is partnering with Alibaba and DeepSeek, and Audi's new models use Huawei's Qiankun intelligent driving system. These partnerships are speeding up technological iteration and helping German firms strengthen their global competitiveness.

Recent data further underscores the resilience of China-Germany cooperation. In the first nine months of 2025, two-way trade amounted to 185.9 billion euros (216 billion dollars), up 0.6 percent year on year, with China being Germany's largest trading partner again. The steady growth highlights industrial complementarity: Germany's engineering capabilities and China's fast-paced innovation create broad room for collaboration.

At a time of shifting global supply chains and rising geopolitical competition, German companies continue to expand investment in China, providing a solid foundation for China-EU cooperation. Despite political noise and "de-risking" rhetoric, their actions attest to a consistent judgment: economic gains and technological innovation remain central to global business decisions, and mutual benefit continues to anchor China-EU ties.

Chinese investment in Germany is also on the rise. Germany Trade & Invest data show that Chinese companies launched 199 greenfield projects in 2024, making China Germany's third-largest source of foreign investment. Companies such as CATL and NIO have set up production or R&D facilities in Germany, advancing cooperation in green transition and technological innovation.

Michael Schumann, chairman of the board of the German Federal Association for Economic Development and Foreign Trade, noted that the China-Germany relationship is not built on one-sided dependence but on industrial complementarity, market demand and shared innovation.

The growing two-way engagement shows that companies from both sides are seeking rational, confidence-based cooperation. With complementary industries, technologies and markets, China-EU cooperation continues to move forward on a path of mutual benefit and steady development. Enditem