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As the biannual World Economic Forum meeting in Dalian, China wraps up on Thursday, European countries are keeping an eye on Beijing's plans to upgrade its manufacturing industry.
Germany is likely to play a significant role in that, as the two export-driven nations are seeking stronger industrial ties.
Ira Spitzer reports from Berlin.
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VO#1 This German industrial robot, now owned by a Chinese firm, may offer a glimpse into the potential for future cooperation between Germany and China. When German chancellor Angela Merkel hosted China's premiere Li Keqiang in Berlin last month, the two countries spoke of developing closer ties both economically and politically.
(SOT, Angela Merkel, German Chancellor)
Germany and China see the opportunities that globalisation and digitalisation represent and we are convinced that we should work together to bring global progress together. But from that grows a special responsibility for both countries - for Germany and China.
VO#2 At the heart of this potential cooperation are two strategies that each government is pursuing. Germany's Industrie 4.0 looks to bring more automation and enhanced use of data and connectivity into the manufacturing process. China's Made in China twenty twenty five plan is about upgrading its manufacturing industry, largely through technology. The partnership between German software firm SAP and Chinese telecom company Huawei is one of several high-profile examples where the initiatives converge, according to Jost Wubbeke of the Mercator Institute for China Studies.
SOT, Jost Wuebbeke, Mercator Institute for China Studies
"It's also a chance to find common solutions to common problems. Industry four point oh, it's often not completely clear how that should be implemented exactly…. and the technical challenges are massive. So when that's undertaken together, everyone can learn from the shared experiences."
VO#3 Mergers and acquisitions are another element of the Chinese approach. Two thousand sixteen was a record year for Chinese investment in Germany with Chinese companies spending more than eleven billion dollars to acquire German firms. But that investment, much of it in the high tech sector, has also caused been a source of tension between the two countries.
(SOT, Jost Wuebbeke, Mercator Institute for China Studies)
The central problem is that there's not reciprocity there. That in Europe relatively open investment is possible, whereas in China there's still a lot of restrictions.
VO#4 Beijing was also not happy with German efforts to hinder certain acquisitions. But the rhetoric from both sides has improved since then, perhaps a sign that Beijing and Berlin may see the overall picture as one that benefits both sides of the table.
Ira Spitzer, Berlin.
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