German tech giant Siemens expands green energy cooperation in Hainan

German multinational tech giant Siemens Energy is deepening its three-decade partnership with south China's Hainan Province through the construction of new assembly and research centers, reinforcing the company's confidence in Hainan as a key hub for green energy and high-end manufacturing.

The tropical southern island province has long been an attractive destination for tourism but is also now becoming an increasingly appealing place for foreign investment, particularly after island-wide special customs operations took effect in December.

The expanded Hainan Free Trade Port (FTP) is now the world's largest FTP by area, allowing freer entry of overseas goods, zero-tariff coverage and more business-friendly measures.

Siemens Energy became the first foreign-invested enterprise to register after this measure came into force, with the company breaking ground on a new gas turbine assembly base and service center.

However, Siemens' relationship with Hainan dates all the way back to 1995, when two Siemens V94.2 gas turbines were installed in the island's Yangpu Economic Development Zone.

By the time they were retired in November last year, these units had generated a staggering 28.4 billion kilowatt-hours of electricity. Today, that legacy is evolving into a more sophisticated industrial presence as the new Siemens Energy Hainan Gas Turbine Assembly and Service Center now takes shape. Meanwhile, the company's Green Energy Industry Innovation Research Center is also set to begin full operations later this year, focusing on the research, application, and commercialization of low-carbon solutions.

According to a local investment official, the industrial maturity of Yangpu, and the connectivity it offers via its port in the north of the island, was another decisive factor for the German energy giant's continued investment.

"Specifically, because Yangpu is actually [right at] Hainan Province's industrial heart, it covers the main core of petrochemical or advanced manufacturing, so we have very comprehensive industrial facilities, auxiliaries -- everything is prepared. So they think this place is the best-equipped place in the whole Hainan Free Trade Port," said Li Rui, deputy general manager of the energy development department at the Yangpu International Investment Consulting Company.

Construction is also underway on Siemens Energy's second global gas turbine assembly base. Scheduled to be fully operational by 2027, the facility will handle assembly work and provide full-life-cycle services, including upgrades and maintenance for key equipment.

The more than 30-year journey of Siemens in Hainan's Yangpu highlights the ongoing evolution of China-Germany cooperation, reflecting a shared vision for pursuing sustainable projects amid the wider green energy transition.

Joern Schmuecker, senior vice president of Gas Services Central at Siemens Energy, emphasized that the goal is to build a comprehensive industrial network across Hainan.

"Together with our partners, we want to drive innovation across the value chain and we want to enhance capabilities around the equipment, the manufacturing, but also around service and on top [of that], of course, we can enhance project execution capabilities," he said, when speaking on the sidelines of an event inaugurating Siemens' new assembly base project back in December.

The partnership is also one of the highlights of the long-standing cooperation between Germany and China, with ties between the two sides in the spotlight this week as German Chancellor Friedrich Merz completed a two-day official visit to China.

On Thursday, Merz and the delegation visited a site run by Siemens Energy in the eastern Chinese tech hub of Hangzhou, where they learned about the company's operations in China and toured its circuit breaker production workshop.

German tech giant Siemens expands green energy cooperation in Hainan

Shanghai is improving its business environment starting from the neighborhood level to ensure the precision of the city management.

This footpath along the Suzhou Creek is a popular spot for leisure and exercise in the city.

Many visitors of the Fotografiska Museum like to have a cup of coffee and enjoy the outdoor vibe. But in fact, putting chairs outdoors is not a simple matter for the store itself.

When this gallery opened in 2023, it wanted to set up an outdoor seating area.

"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.

In Shanghai's North Station neighborhood, 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, a business environment specialist of Shanghai North Station Neighborhood.

The gallery shared its plans with the specialist, who then reported them to the neighborhood office. The office coordinates 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 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.

On the first workday of 2026, Shanghai launched its ninth version of the action plan to accelerate the development of a world-class business environment. The plan prioritizes government service efficiency as its first chapter.

Building a world-class business environment is also highlighted in the recommendation for China's 15th Five-Year Plan (2026-2030), signaling a clear commitment to supporting enterprises, especially small and private companies.

Shanghai improves business environment starting from neighborhood level