The city of Taicang in east China's Jiangsu Province has witnessed remarkable transformation over the years, with over 500 German companies now calling it home as its booming industrial manufacturing sector has fostered robust growth.
Taicang, aptly dubbed the "town of German enterprises," has long focused on nurturing two key industries -- automotive parts and high-end equipment manufacturing. Today, an astonishing 70 percent of the components needed to build a car can be sourced locally -- a testament to the city's prowess.
Twelve years ago, renowned German machine tool giant, Chiron Group, settled in Taicang due to its proximity to Shanghai and its favorable business climate. Chiron went on to establish a manufacturing plant in this seemingly unassuming city.
The rising investments in Taicang have helped the city to keep up with the demands of the expansive German enterprises, from talent acquisition to sourcing local suppliers.
"You need engineering [people]. You need logistic people. You need assembly people. It was highly development, but it was also not easy to find the right supplier with the right quality level to support us," said Willi Riester, CTO of Chiron Machine Tool (Taicang) Co.
Riester said that collaboration between German and Chinese enterprises back then resembled a mentor-mentee relationship. However, with the growth of China's new energy vehicle companies in recent years, the relationship has evolved into a mutually beneficial partnership, marked by both collaboration and fierce competition.
"The last ten years there was really fast modernization. There is definitely now the Chinese machine tool market really catching up. There can be beneficial for German companies. Also when they can find some suppliers, they have also some technologies or those some ongoing innovation that they have developed which we can use. There is really a good kind of a win-win situation, but it is not in all fields. In some other fields, there is really some kind of hard competition. They develop, we develop. They develop, we develop. This is normal, and the best competition is who will win, who has the better idea?" said Riester.
Chiron Group is just one of the 500 German companies flourishing in Taicang. These enterprises not only reap the rewards of China's ongoing modernization, but also contribute significantly to its robust growth.
German companies have brought about a ripple effect that has changed local Chinese enterprises, helping them become top competitors on the global stage.
"In some industries, German companies remain the top ones, while in others, German companies have become apprentices, on the learning side. Chinese companies now are very capable, and their abilities and products outperform other international brands, such as electric cars. As we all know, China is the strongest market in this area. China is the world's top in this." said Marieke Bossek, general manager of German Center for Industry and Trade Taicang Co.
The effect brought about by German companies has propelled local Chinese enterprises to foster standardized and scaled production, adopting cutting-edge equipment, refined technologies, and high quality standards. It has also driven government departments to provide efficient and precise assistance to companies from both China and Germany.
Additionally, vocational education, whose priority was to serve German enterprises, has expanded into a vocational education industrial park, the country's first-of-its kind, supplying a talented workforce for the local industry.
Furthermore, Taicang has expanded its industrial ecosystem beyond the automotive supply chain. It aims to develop a modern industrial system known as "New Taicang" by nurturing forward-looking industries led by local enterprises in aviation, low-altitude economy, and aerospace, contributing to China's independent and high-quality development path.
Eastern Chinese city becomes hub for German companies, fostering industrial growth
Eastern Chinese city becomes hub for German companies, fostering industrial growth
