Small county-level city becomes unlikely home to hundreds of German businesses

China

Small county-level city becomes unlikely home to hundreds of German businesses

2026-02-27 17:38 Last Updated At：22:27

The county-level city of Taicang in east China's Jiangsu Province has gained a reputation as the "hometown of German enterprises" in China, with this small city located along the Yangtze River estuary now being an unlikely hub for more than 500 German businesses and thousands of German workers.

Falling under the jurisdiction of Suzhou but located just an hour's drive north of Shanghai, Taicang has quietly written one of the most interesting chapters in the history of China-German economic cooperation.

The city, with a population of just over 800,000 people, is home to thousands of German nationals living and working, while German engineering is now woven into the fabric of the local economy.

Manufacturing firm Kern‑Liebers became the first foreign-owned company to settle there in 1993, drawn by Taicang's proximity to Shanghai, strong local government support, and even the familiar sight of pine trees reminiscent of Germany's Black Forest, where the company is based.

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Since then, more than 560 German‑funded firms have followed, bringing total investment above six billion U.S. dollars and driving annual industrial output to over 67 billion yuan (about 9.76 billion U.S. dollars).

Shortly after the just-concluded Spring Festival holiday, Erek Speckert, CEO and president of Kern‑Liebers, returned to Taicang to announce the company's latest investment -- with the new 20‑million‑U.S.‑dollar project marking Kern‑Liebers' 12th expansion in the city.

"Over the years, we've done many investments in Taicang. If I show you the history at the other wall later on, you will see that we have been growing in Taicang year by year. It's not just one investment and one success, it has been successful over 33 years," said Erek Speckert, CEO and President, Kern Liebers.

"There are many pine trees in Taicang. And Kern Liebers is located deep in the Black Forest in Germany. And there are a lot of pine trees in the Black Forest, or the Black Forest is actually just pine trees. So the feeling of home when we came to Taicang was very strong, related to trees," he added, while explaining the company's attraction to the area.

After more than three decades in China, Kern‑Liebers has found new reasons to remain rooted in Taicang, from a German‑style town to a vocational education system that trains over 10,000 skilled workers. The city's auto‑parts industry now anchors the local economy, supplying virtually every component needed to build a car.

"More than 560 German enterprises have settled in Taicang since the first one 1993. It takes 14 years to develop from the first to 100, but it just takes two years from our 400 to 500 German enterprises," said Jin Liping, director of Taicang Commerce Bureau.

Industrial cooperation between China and Germany as highlighted in Taicang has strengthened German business confidence, with both sides pledging to expand avenues for partnership and shared growth.

"That is probably the best example of what we can do in terms of both countries generating win-win situations. Now I just hope that our leaders are able to strengthen this cooperation that we can continue to generate win-wins and to increase our business. That's no win-lose or lose-win. We always have to find ways that we generate a win-win for everyone," said Speckert.

Ties between Germany and China were in the spotlight this week as German Chancellor Friedrich Merz arrived in Beijing on Wednesday for a two‑day official visit to China, before continuing Thursday to Hangzhou with a high‑level business delegation. Accompanied by around 30 executives from industry giants including Bayer, Siemens, Adidas, Mercedes‑Benz and BMW, the trip underscores the central role of trade and industrial cooperation in China–Germany relations.

Shanghai improves business environment starting from neighborhood level

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.