CIIE viewed as must for German firms eyeing China market

For Michael Borchmann, a former senior official in the German state of Hessen, it's clear that any company wanting to sell its products to the vast Chinese market can't afford to ignore the China International Import Expo, or CIIE.

The fifth CIIE will be held in Shanghai from Nov 5-10 at the National Exhibition and Convention Center.

And from the perspective of Borchmann, a former director of the European and International Affairs Department of the Hessen State Chancellery, there is no event like the CIIE anywhere else in the world.

"It has gained such importance that no enterprises which want to sell their products can afford to ignore the CIIE and the attractive Chinese market," he told a conference in Frankfurt on Wednesday held by the Frankfurt office of the Shanghai Foreign Investment Development Board to promote the expo and Shanghai.

More than 170 German companies participated in the fourth CIIE in Shanghai last year. And this year, 280 of the top 500 global companies will attend the 2022 edition, with 90 percent of these companies being repeat participants.

Borchmann notes that the expo is not just a platform for global multinational companies, but also small and medium-sized enterprises.

"CIIE is also a showcase for Shanghai, an ideal location for German businesses," said Borchmann, who has visited China 16 times.

China has been Germany's largest trading partner for the past six years. China is the largest source of imports for Germany and the second-largest export destination, trailing the United States. Some 5,000 German companies operate in China.

Top German automakers such as Mercedes-Benz, BMW and Volkswagen sell about 30-40 percent of their products in the Chinese market.

Norbert Noisser, senior adviser for China at the Chamber of Commerce and Industry of Giessen-Friedberg, said that the CIIE is a strong signal for the opening of the Chinese domestic market to foreign investors.

"Shanghai is the most important location for companies to invest in China," he said. "China is a driver for innovation, and an important partner with a huge domestic market. This opens great opportunities for German companies."

Noisser notes that the pandemic and the Russia-Ukraine conflict, along with other pressures on global supply chains, have posed major challenges for companies, and he said these problems require international cooperation.

He praised the conclusion of the negotiations of the Comprehensive Agreement on Investment between the European Union and China in December 2020 as an important step.

He stressed that it will be especially important when the agreed words are allowed to be implemented, clearly referring to the European Parliament, which has been delaying the ratification of the bilateral investment deal. EU trade officials believe the agreement will bring more benefits to European companies in the vast Chinese market.

Both Noisser and Borchmann applaud the huge progress achieved between Germany and China over the past 50 years of diplomatic relations, not just in trade and investment but also in wide-ranging people-to-people exchanges.

Zhu Yi, vice-chair of the Shanghai Municipal Commission of Commerce, welcomes the participation of German companies in the CIIE and their investment in Shanghai.

She said that Shanghai is dedicated to creating the most optimal business climate to facilitate investment and trade and with the most efficient government administration.

"Shanghai is where you can feel the vibrancy of the industrial ecosystem. It is the most promising and viable market for you to explore business opportunities," she told Wednesday's conference via video link.

Xue Feng, president of the Shanghai Foreign Investment Development Board, talked at length about Shanghai's business climate for foreign investors.

He said that Shanghai's economy has been deeply integrated into global trade.

"Innovation and inclusiveness have always been Shanghai's most distinctive characteristics," he said.

Zhu Weige, the economic and commercial counselor of the Chinese Consulate General in Frankfurt, said that China-Germany relations have achieved huge progress in the past 50 years and will maintain their momentum despite some recent negative coverage by news media.

"The CIIE this year will be of greater significance because it will be held at a time of the 50th anniversary of bilateral diplomatic ties between China and Germany and shortly after the 20th National Congress of the Communist Party of China," he said.

He also welcomes visitors' participation in the Hongqiao Forum, an event held as part of the CIIE. The forum will explore the benefits of the Regional Comprehensive Economic Partnership, a trade agreement that went into effect in January, and the higher level of China's opening-up.

Stefan Ress, of the German winemaker Balthasar Ress Weingut, whose products are already sold in China, shared his excitement about the huge interest among Chinese consumers in German wines, especially the Riesling variety.

"We are aware of the importance of CIIE," he said, adding that his company is getting ready to participate in the Chinese import expo.

chenweihua@chinadaily.com.cn