Baden-Württemberg and Jiangsu reap harvest in mutual cooperation

The Jiangsu-Baden-Württemberg Corporate Innovation Promotion Event was held on Feb 25 in Nanjing, attracting more than 800 guests from both countries including Nicole Hoffmeister-Kraut, Minister of Economic Affairs, Labour and Housing of Baden-Württemberg and representatives from all 13 cities in Jiangsu.

Located in southwest Germany, Baden-Württemberg is the third largest state in Germany in terms of its area, population, and economic development.

Mechanical manufacturing is the pillar industry of Baden-Württemberg, with its industrial output accounting for one third of that of the entire country. It is also home to the headquarters of Daimler and Porsche, two famous automobile makers, along with an important research and manufacturing base of Audi, Volkswagen's luxury subsidiary.

Baden-Württemberg and Jiangsu started mutual cooperation in economy and technology in 1985 and offices were set up in Nanjing and Stuttgart in 1987. A friendly relationship contract was signed by the two sides in 1994.

By the end of October 2018, Germany has invested in a total of 1,951 projects in Jiangsu. The contractual foreign capital added up to $11 billion and the actual use of foreign capital reached $7 billion.

Import and export between Germany and Jiangsu accounted for one seventh of the bilateral trade volume between German and China by October 2018. One fourth of Germany’s investment in China has settled down in Jiangsu and one fifth of China’s investment in Germany was made by Jiangsu companies.

After 25 years of development, mutual cooperation between Baden-Württemberg and Jiangsu has achieved great success in areas such as the economy and trade, environmental protection, and education, while frequent high-level visits have been maintained by both sides.

Hundreds of companies invested by Baden-Württemberg companies have settled in Jiangsu province, with their overall investment reaching over $600 million. More than 100 of them are located in Suzhou’s Taicang.

A batch of distinctive industrial parks has been established as Jiangsu companies’ investment in Baden-Württemberg companies keep increasing, such as Kunshan German Industrial Park, which currently clusters 123 foreign companies with an overall investment of approximately $1 billion and an annual sales volume of 10 billion yuan ($1.5 billion). The industrial park is also home to seven of the world’s top 500 companies, such as General Mills, Kellogs, and Yihai Kerry.

Among these companies, 55 of them are German companies and more than 10 of them are from Baden-Württemberg.