German hidden champions eye deeper cooperation with China

European business and industry leaders widely emphasized the importance of investment and collaboration in the Chinese market, at the China-Germany (China-Europe) Hidden Champions Forum 2025 held recently in Beijing.

"Hidden Champions" refer to highly successful yet little-known small and medium-sized enterprises (SMEs) that lead the global market in their specific niches. Of the 2,734 such firms worldwide, the vast majority are based in Europe. Germany alone is home to over 1,300.

After the forum's debut in China last year, this year it gathered over 600 representatives from China and abroad, including business executives, government officials, and industry leaders.

Walter Doring, chairman of the Senate of Economy Europe and chairman of the Organizing Committee of the Summit of World Market Leaders (the Hidden Champion Summit), led a delegation of over 150 companies this year — up from 60 in 2024. "I think this shows everything," he remarked.

Many companies reiterated that China, as the world's second-largest economy and a vast consumer market, is simply too important to ignore. For those already operating in China, confidence in future growth remains strong.

Carlos Riveros, managing director at M-Tech GmbH, noted that China accounts for around 20 percent of their global market share after 15 years of doing business locally, and the potential for further growth remains strong.

German pump manufacturer Wilo Group also plans to double its China-based R&D workforce by 2025.

According to the German Chamber of Commerce in China, 51 percent of the German companies plan to increase their investment in China over the next two years, with 87 percent citing the need to maintain competitiveness.

The forum comes as China and the EU mark the 50th anniversary of diplomatic ties. Jivka Ovtcharova, an expert for the European Commission, called for deeper China-Europe collaboration in engineering and technology.