rki.news
XI’AN, March 27 — German firms are significantly expanding their presence and investments in China, signaling strong confidence in the country’s growing industrial and technological ecosystem.
ZF LIFETEC, the passive safety division of global automotive supplier ZF, officially launched its gas generator expansion project in Xi’an, Shaanxi Province. With a total investment of 150 million euros (approximately 173.3 million U.S. dollars), the project integrates advanced production lines and a new R&D facility. Annual capacity will reach 4.1 million hybrid gas generators and 1.8 million pop-up hood actuators, while the R&D laboratory will focus on next-generation hybrid gas generator development.
Manfred Suess, vice president of ZF LIFETEC, highlighted that the expansion represents both technological upgrading and enhanced global competitiveness. Nick Song, president of ZF LIFETEC China, Korea, and Thailand, added that products will meet domestic demand and serve global markets.
Other German enterprises are following suit. BASF inaugurated its 8.7-billion-euro Verbund chemical complex in Guangdong Province, producing over 70 products for multiple industries. BMW deepened its AI ecosystem in China, while Porsche launched its first strategic overseas R&D center in Shanghai.
Data from the German Economic Institute shows new German direct investment in China reached 7 billion euros in 2025, the highest in four years. A German Chamber of Commerce survey reports 56 percent of firms plan to deepen cooperation with Chinese partners, reflecting optimism in China’s role as a hub for innovation and high-standard industrial development.