Germany should strike a new balance between cooperation and competition in its ties with China, while the two leading global manufacturing powerhouses should seek deeper collaboration in innovation and industrial upgrading, according to a British economist.
John Ross, a senior fellow at the Chongyang Institute for Financial Studies at Renmin University of China, gave his assessment as German Chancellor Friedrich Merz wrapped up a two-day official visit to China on Thursday.
Merz met with Chinese President Xi Jinping and held talks with Premier Li Qiang in Beijing on Wednesday, before traveling to the eastern tech hub of Hangzhou, where he toured leading Chinese robot-maker Unitree Robotics.
The chancellor, who was accompanied by a large business delegation, including top executives from 30 German firms, was given a robot boxing demonstration, and viewed a live performance of a segment of the dynamic robot martial arts display that featured during the 2026 China Media Group Spring Festival Gala, broadcast on the eve of the Chinese New Year.
In an interview with the China Global Television Network (CGTN), Ross said Merz's visit signals a focus on cooperation in the high-end manufacturing sector, with both sides looking to explore potential collaborations amid an ongoing shift in these fast-changing industries.
"Germany is the most advanced manufacturing country in Europe, in fact one of the most advanced in the world. China has taken a very important position on the development of robots. You now have the general automation of industry, the famous dark factories in China in which you don't have any human beings operating and robots are an extension of that. This is an area in which Germany would like to maintain its manufacturing lead. The traditional situation between China and Germany was that Germany exported high-value machine tools and capital equipment to China, and China exported consumer goods to Germany. Now that's changed because of China's economic development," he said.
Ross pointed out that while China has overtaken three G7 countries— Canada, France, and Italy—in research and development spending as a percentage of GDP, a key indicator of innovation potential, it still lags behind Germany.
While noting that Merz was looking to gain first-hand insights into China's high-tech prowess with his visit to Unitree Robotics, Ross said both sides should aim to balance cooperation and competition while recognizing the synergies between Germany's manufacturing core and China's industrial power.
"I'm sure that what Merz will be looking for is the potential for cooperation and also competition between the two countries and having seen the robot development in China, this is very spectacular. The things which catch the attention are things like performing on the Spring Festival [Gala] show and doing acrobatics and things like that. But actually in terms of production, the most impressive [aspect] of course is the role of robots actually in production. I'm sure he (Merz) wants Germany to learn both how to compete and how to cooperate in this area. It shows that Germany is not de-industrializing -- Germany's perspective is still to maintain itself as the manufacturing core of Europe, and China is the biggest manufacturing power in the world. So Merz will be wanting to look at what are the synergies between the two," he said.
Merz's China visit signals focus on finding synergies in manufacturing sector: economist
Shanghai is taking steps to improve its business environment starting from the neighborhood-level up, delivering greater precision of city management and ensuring the meets of small business operators and residents are met.
At the start of this year, Shanghai launched its ninth version of an action plan to accelerate the development of a world-class business environment, with the plan prioritizing government service efficiency.
Building a world-class business environment is also highlighted in the recommendation for China's 15th Five-Year Plan (2026-2030) -- a key blueprint mapping out the country's development goals for the years ahead -- signaling a clear commitment to supporting enterprises, especially small and private companies.
These measures are already being put into practice to good effect across the city.
The redeveloped Suzhou Creek is a popular spot for leisure and exercise in the city, with the Fotografiska Museum overlooking the river being a top choice for many to stop for a cup of coffee and enjoy the outdoor vibe.
However, when the gallery first opened in 2023, though it wanted to set up an outdoor seating area, it was mindful of not disturbing the public space.
"We are located by the road and along the creek, so there are many joggers, sports enthusiasts, and tourists passing by. We need to consider how to balance our operations with the flow of people through the area," said Crystal Cao, guest experience manager of the gallery.
The problem was quickly solved with the help of a "business environment specialist" in the neighborhood, who weighed up the concerns and found a workable solution.
In Shanghai's "North Station" area, 12 specialists each oversee 30 to 40 local companies, ensuring that their requests are addressed promptly.
"My job is to communicate with enterprises and know their needs. If they have requests, we help solve them," said Sun Danyan, one of the business environment specialists in the North Station Neighborhood.
Looking to push ahead with its outdoor seating concept, the gallery shared its plans with the specialist, who then reported them to the neighborhood office. The office coordinated with district-level departments, such as landscaping and city appearance bureaus, to design the outdoor area.
Without such specialists, companies, especially smaller ones, would have to navigate multiple departments on their own, which can be challenging.
"Small companies often have limited access to resources and information. They need our neighborhood office to provide support and help them access the resources they require," said Sang Zhenxiao, office director of Shanghai North Station Neighborhood.
Private enterprises account for more than 90 percent of Shanghai's businesses and are a key pillar of the city's economy.
Xu Jiao, deputy director of the Development and Reform Commission in Shanghai's Jing'an District, said the upgraded business environment is designed to support not only large or foreign firms, but also small local companies.
"The neighborhood is the closest to the companies and the last kilometer in the business environment. So, we use the 'neighborhood serving as whistle blower to urge departments to report for duty' to make our job more efficient. Any problems companies meet can be reported to the higher level via this mechanism," he said.
Shanghai improves business environment starting from neighborhood level
Shanghai improves business environment starting from neighborhood level
Shanghai improves business environment starting from neighborhood level
