(JW Insights) Jul 17 -- Many German companies oppose 'decoupling' with China and support the governments of China and Germany to strengthen communication and dialogue, and create favorable conditions for cooperation between their companies, reported China Daily on July 13.

The Chinese path to modernization will provide broader growth opportunities for German companies and the idea of "de-risking" should not be politicized or ideologized, said China's top commerce official.

During his meeting with Karl Haeusgen, president of German Mechanical Engineering Industry Association (VDMA) and Christian Klein, CEO of German software and cloud company SAP SE in Beijing on July 11, Chinese Commerce Minister Wang Wentao said the idea of "de-risking "should not lead to "decoupling "and "de-Sinicization".

As mechanical equipment manufacturing is a key industry for China-German economic and trade cooperation, Wang urged businesses on both sides to further consolidate the existing cooperation foundation and tap cooperation potential in new fields such as green low-carbon, digital economy and sustainable development.

Highlighting that "decoupling" is not in the interest of German companies, Haeusgen said the move of "de-risking "should be evaluated and decided independently by businesses.

He said VDMA's member companies support the governments of China and Germany to strengthen communication and dialogue.

Similar views were expressed by Klein.

"SAP opposes 'decoupling' and other related activities. The company will actively participate in building a more resilient global supply chain, call for strengthening international cooperation and formulating unified global data security rules," he said.

The German Chamber of Commerce in China said more than half of the 288 businesses that participated in a survey in May said they plan to invest more in China over the next two years.

Jens Hildebrandt, executive director and board member of the German Chamber of Commerce in China, said that geopolitics has a profound effect on companies on the ground, prompting them to drive forward localization and diversification strategies as risk management measures. German companies will sustain investments in the Chinese market as a means of maintaining a competitive edge and harnessing their full potential.

German investment in China reached $2.57 billion in 2022, soaring 52.8 percent year-on-year, said China's Ministry of Commerce, according to China Daily report.

(Gao J/Yuan XY)