German companies stay bullish on China market

HANGZHOU - Ma Jishen was excited to see Bayer, the German healthcare and agribusiness giant, achieve the designed production capacity in just over a month at its new factory, where he serves as director.

The Bayer Crop Science Hangzhou Production Site, which spans 4 hectares and has a total investment exceeding 300 million yuan ($41.18 million), began operations on Jan 15 in Hangzhou, capital of East China's Zhejiang province and a leading tech hub. The site is projected to generate an output value of 2 billion yuan this year.

The production site produces a range of crop protection products, including insecticides, seed treatments, and growth regulators, covering key crops such as rice, corn, wheat, and fruits and vegetables. Bayer provides farmers with crop protection solutions, safe pesticide use, and application techniques to support sustainable agricultural practices.

In the workshop, automated and intelligent production lines run smoothly, quickly filling bottles with crop science products, with hardly any production staff in sight. "On average, each production line requires fewer than one employee. We aim to set an advanced example of green manufacturing here," said Ma.

In 2000, Bayer established its only Chinese crop science plant in Hangzhou. Over the past 25 years, the company has continuously increased its investment in Hangzhou, totaling over 1 billion yuan.

Ma believes that the launch and production ramp-up of the new factory is closely linked to China's vast market potential, complete industrial chain, and the local government's services.

"China is a key and attractive market for agriculture with strong demand and robust growth. The Yangtze River Delta region, where our new factory is located, has a complete supply chain. We can get raw materials and find plenty of logistics and storage partners nearby easily," said Ma in an interview with Xinhua.

"The local authorities spent nearly a year tailoring an investment agreement for Bayer. It sends a clear message that China welcomes companies and investors worldwide to operate and grow their businesses here," he said.

Bayer collaborates with local partners on new product development, drawing inspiration from China. To reduce environmental impact, the business focuses more on biologicals and green solutions. To strengthen its local R&D capabilities, Bayer upgraded its innovation center in China, one of its 17 global innovation hubs.

Recently, several German companies expanded their investments in the Yangtze River Delta region. German optical systems giant ZEISS Group plans to build its Greater China headquarters in Shanghai, covering 60 mu with an investment of over 600 million yuan.

Bartec Thermal Control and Safety System (PingHu) Co Ltd launched its Asia-Pacific headquarters in the city of Pinghu, Zhejiang. The company focuses on explosion-proof electrical machines and expects to generate 250 million yuan in annual output.

In 2024, 59,080 new foreign-invested enterprises were established in China, up 9.9 percent year-on-year. By the end of 2024, the cumulative number of foreign-invested enterprises in China exceeded 1.23 million, with actual use of foreign capital reaching 20.6 trillion yuan.

In February, China issued an action plan to stabilize foreign investment, with efforts to expand opening-up in sectors like telecommunication, biotechnology, and medical services and offer comprehensive services for foreign-invested projects.

The plan was approved at a State Council executive meeting last month. The meeting highlighted the important role of foreign-invested enterprises in employment, export stability, and industrial upgrading and urged more practical and effective measures to maintain existing investments and attract new ones.

A survey by the German Chamber of Commerce in China shows that 92 percent of surveyed companies plan to keep operating in China.

"We're optimistic about China's economic resilience, technological progress, and its focus on low-carbon and rural development. Our investment in China not only creates opportunities for us to develop here but also contributes to the world," said Ma.