German Industry 4.0 strategy seeks Chinese partnerships

North Rhine-Westphalia, one of the most developed states in Germany, welcomes Chinese enterprises to support its Industry 4.0 development plan.

"In the context of globalization, partnership is the only solution to achieve win-win results," said Garrelt Duin, economic minister of NRW.

"We have witnessed the rapid growth of the Chinese economy. We believe Chinese firms can achieve good results in NRW."

The German government developed the industry 4.0 plan in 2013. It aims to consolidate the country's position in the manufacturing industry with the support of cyber physical systems.

China has introduced its Made in China 2025 Initiative and in 2014 the United States launched its Industrial Internet strategy to serve similar goals.

"We (Germany) hope we can shape the future of industrial production. We will be surpassed by our competitors if we cannot react to industrial changes rapidly," said Duin."We will both take global leading roles if China and Germany can work together."

As the traditional industrial state in its domestic market, NRW has set a goal to become an industrial center for the national strategy.

"We are promoting Industry 4.0 in Germany. However, many companies still have no idea what Industry 4.0 is and what benefits the strategy could bring for them," Duin said.

"We hope small and medium-sized enterprises, universities and Chinese companies can create partnerships to promote the Industry 4.0 strategy."

Duin stressed that Chinese companies are partners, rather than suppliers that just provide final products to German companies. They bring new ideas, capital and cooperation to Germany.

"We want to combine Chinese products and technologies with local products to promote innovation," Duin said.

"In the era of Industry 4.0, supported by the internet of things, NRW serves as a provider of 'things', meaning all kinds of products that can be connected by digital technologies."

Chinese companies have made significant progress in supporting NRW's Industry 4.0 development plan.

For instance, ZTE Corp's technologies are used in NRW's healthcare systems to better monitor the safety of elderly people at home.

Huawei Technologies Co Ltd's products are used in Borussia Dortmund's soccer stadium so that 80,000 football fans can use broadband service simultaneously on their mobile phones.

NRW has set a series of plans to promote Industry 4.0, Duin said.

For example, the state plans to have 100 percent broadband coverage by 2018. Also, a fifth generation mobile network will be put into operation starting in 2020.

Ideal investment destination

An increasing number of Chinese companies have been seeking expansion opportunities in NRW in recent years.

In 2015, 86 Chinese companies established branches in NRW, an increase from 77 in 2014.

In comparison, the US and the Netherlands, two key investors in NRW, settled 47 and 43 projects respectively in the region in 2015.

"Its geographical location, well-developed exhibition industry, well-connected transportation system and strong research and development capacity are key factors that attract Chinese investors," Duin said.

NRW's welcoming culture is also a highlight that attracts global investors.

There are over 900 Chinese companies such as Bank of China Ltd, Huawei, XCMG Group and ZTE in NRW, compared with just 100 in 2003.

"The presence of those Chinese companies suggests that NRW is an attractive destination," Duin said.

One-stop sevice

NRW provides outstanding support to Chinese investors on their way into the European and German markets.

NRW.INVEST, an investment support agency, which the NRW government established, has representative offices in Beijing, Shanghai and Nanjing in Jiangsu province, as well as project offices in Guangzhou, Guangdong province and Chengdu, Sichuan province. It helps Chinese businesses to better understand NRW before locating their businesses in the region.

The experienced economic development agency promotes NRW worldwide and helps foreign companies with their investment plans in the state. Its professional support team provides comprehensive information about and contacts from NRW, analyzes investment projects and finds the right location for every project.

The agency assists companies and investment projects from their first steps to their conclusion.

tangzhihao@chinadaily.com.cn

(China Daily 10/28/2016 page12)