SOURCE / ECONOMY
Bavarian governor's China visit signals strengthening economic cooperation
Published: Mar 25, 2024 09:50 PM
Markus Soder (center), Governor of German state Bavaria, visits Xinzhuluqiao Machinery Ltd. in Chengdu, Southwest China’s Sichuan Province and takes a ride on a maglev train on March 25, 2024.

Markus Soder (center), Governor of German state Bavaria, visits Xinzhuluqiao Machinery Ltd. in Chengdu, Southwest China’s Sichuan Province and takes a ride on a maglev train on March 25, 2024.


In a move to strengthen economic ties with China, Markus Söder, the governor of the German state of Bavaria, embarked on a five-day visit to China. The visit is seen as a significant step toward enhancing economic cooperation between the largest German state and China, emphasizing the state's strategic focus on China, its largest global trading partner, analysts pointed out.

After arriving in Southwest China's Sichuan Province, Söder met with Huang Qiang, governor of Sichuan, on Monday, marking the beginning of Söder's China trip, during which he will have high-level meetings in Beijing with Chinese Premier Li Qiang and Commerce Minister Wang Wentao, the Munich-based Süddeutsche Zeitung reported.

"We want to strengthen the expansion of economic relations," Söder said during his visit to Sichuan, highlighting the presence of numerous Bavarian companies in China and expressing an intention to support their investments.

Experts noted that the sentiment echoes the broader German corporate ambition of fostering closer economic cooperation with China, not only at the federal level but also at the local government and business levels.

Bavaria has shown a commitment to strengthening ties with China through Söder's visit, along with the trips of numerous German corporate executives to China, and German businesses are seeking closer economic ties with China, Sun Yanhong, a senior research fellow at the Institute of European Studies under the Chinese Academy of Social Sciences, told the Global Times on Monday.

China stands as Bavaria's largest and most significant trading partner globally, with bilateral trade exceeding 53 billion euros ($57 billion) in 2023, about one-fifth of Germany's total trade with China. The state's exports to China topped 17 billion euros in 2023 and imports neared 36 billion euros, according to the Federal Statistical Office of Germany.

Söder's visit has been well-received by the German Chamber of Commerce in China, while voicing concerns by German companies regarding market access and development in China.

"Personal exchanges are invaluable to allow mutual understanding, and we appreciate the visit of Söder to support German companies in China," Martin Klose, executive director and board member of the German Chamber of Commerce in China (South & Southwest China), told the Global Times on Monday.

China has been Germany's most important trade partner for eight consecutive years. More than 5,000 German companies are present in the Chinese market and directly support more than 1 million jobs, said Klose.

"The vast majority of German companies will stay committed to the Chinese market."

German investments in China show signs of robust growth, with a 19.8 percent increase year-on-year in the first two months of 2024. The majority of German firms reported gains. Audi, for example, reported a 13.2 percent increase in cars delivered in China in 2023, further underscoring the importance of the Chinese market to Germany's economy.

Söder's visit comes at a time when bilateral trade between China and Germany has seen a downturn, with a 15.5 percent year-on-year decrease in 2023. However, China maintained its position as Germany's top trading partner for an eighth consecutive year, with trade amounting to 253.1 billion euros, according to the Federal Statistical Office of Germany.

Klose also mentioned the challenges that German businesses face in China, including decreased business confidence, unfair competition and an overall decline in the risk-reward ratio.

"We hope that in addition to driving cooperation projects, Söder will address the pressing concerns of the German business community such as unequal market access compared with Chinese competitors or legal uncertainty," Klose stated.