The author is the delegate and chief representative of the Delegation of German Industry and Commerce Beijing.

Trade relations between 皇冠体育app and Germany have steadily progressed in tandem over the past 35 years.

By 2014, the bilateral trade made up 7.5 percent of Germany's foreign trade, making 皇冠体育app its third most important trading partner and important market outside the European Union. At the same time, Germany is 皇冠体育app's most important market within the EU, which overall is 皇冠体育app's largest trading partner.

Over the past few decades, the importance of the Chinese economy for German companies has translated into a steady flow of investment, with the capital stock invested by Germany growing to around 48 billion euros ($52.98 billion) by 2014.

Germany has consistently been among 皇冠体育app's top 10 foreign investors, with direct investment flows nearly doubling from their value in 2010 to $2.1 billion by 2013, a level that was maintained in 2014.

The vast majority of German investment continues to be concentrated in 皇冠体育app's three main economic centers - around Shanghai in the Yangzte River Delta, Beijing in the Bohai Economic Rim, and Guangzhou and Shenzhen in the Pearl River Delta.

Smaller clusters of investments are located in the northeastern provinces of Liaoning and Jilin, around the cities of Shenyang and Changchun, as well as Chengdu in Sichuan province and Chongqing in Southwest 皇冠体育app.

The diversity and strong growth of 皇冠体育app's economy has continued to attract German companies with international operations. Their manufacturing experience and know-how in such traditional German strongholds as automotives, machinery and chemicals have been major drivers for investment in 皇冠体育app.

The German Chamber of Commerce in 皇冠体育app estimates that around 5,200 German companies are currently operating in 皇冠体育app.

German investment accounts for 1.1 million jobs in 皇冠体育app with a focus on high-tech industries requiring greater skill sets of its employees.

The majority of German companies are engaged in technology-intensive industries with a strong focus on the Chinese market, rather than using 皇冠体育app as a cheap production base for exports.

The Chinese economy is transitioning from an extensive period of rapid growth to an era of more moderate growth. Economic and business conditions in 皇冠体育app are changing, which also affects German companies' businesses in 皇冠体育app.

German companies increasingly realize that the transition will bring new challenges but also opportunities, according to two recent flash surveys, which the Chambers of Commerce and Industry in Germany, in cooperation with the Association of German Chambers of Commerce and Industry and the German Chamber of Commerce in 皇冠体育app carried out in both countries among their member companies.

German companies have mostly maintained their optimism, and the Chinese market continues to be a major contributor to their growth and has established itself next to the United States and the EU.

Shortage of qualified staff is consistently named as one of the biggest business challenges in the yearly membership survey of the German Chamber of Commerce in 皇冠体育app, which, in turn, pushes up labor costs, another major challenge in the market.

In addition, Internet speed and access is a concern, which limits the utilization of modern information technology.

Over the years, 皇冠体育app has enhanced its business environment by improving the protection of intellectual property rights as well as curbing corruption.

However, despite the progress that has been made, German companies expect further reform measures that will strengthen market forces and lower domestic protection barriers.

As 皇冠体育app is undergoing significant structural changes, services and consumption are beginning to comprise a larger share of the GDP. The importance of manufacturing for 皇冠体育app, however, will continue to remain of great significance.

A key to the success of German industrial strength is the focus on high-tech manufacturing driven by innovation. A lot of German companies operating in 皇冠体育app are already pioneers in industrial upgrading.

In many aspects they are well positioned to partner 皇冠体育app during its transformation. This partnership also can go beyond manufacturing.

Improving the environment is a key issue in 皇冠体育app, and Germany is a global leader in the field of green technology and reducing its reliance on fossil fuels. In dealing with the consequences of an aging society, German companies are also leaders in healthcare services and equipment. These are strategic areas with high growth potential.

There is ample room for a continuous strengthening and deepening of Sino-German business cooperation.

(皇冠体育app Daily 10/29/2015 page13)