On June 20, local time in Germany, as one of the four invited cities in China and the only county-level city, Jiangsu Taicang participated in the 11th Sino-German Economic and Technological Cooperation Forum, which received attention at home and abroad.

Taicang, a county-level city under the jurisdiction of Suzhou, Jiangsu Province, is known as the “town of German enterprises”. Shi Mingde, former Chinese ambassador to Germany, once commented: “Taicang is better known in Germany than in China.” The first impression of many German companies is also, “First know Taicang, then know Suzhou, and finally hear that they are all part of Jiangsu.”

At present, the resident population of Taicang is only more than 800,000, but it has gathered 487 German enterprises, including 60 German “hidden champion” enterprises, and the number of German manufacturing enterprises accounts for nearly 10% of the country, forming three major industrial innovation clusters such as new energy auto parts, aerospace, and industrial mother machines.

What is the charm of this small southern city that attracts so many German companies to gather here?

Source: Taicang Municipal Government

German enterprises and Taicang have been close for 30 years

The relationship between German enterprises and Taicang began in 1993. At that time, the spring breeze of reform and opening up all over the country, there are too many from 0 to 1, in the dimension of attracting foreign investment, this “1” can be Japanese enterprises, can be Hong Kong investment, can be American enterprises. For Taicang, it means that the first German company settled here.

In October 1984, the joint venture contract of SAIC Volkswagen was signed. The butterfly effect of the milestone event of Sino-German economic cooperation has brought visitors from thousands of miles away to Taicang.

As a supplier to Volkswagen, spring manufacturer Kern Liebeus in Baden Wurttemburg, Germany, went to China to look for new opportunities. In 1993, Dr. Stamm, former president of Kern-Liebeus, came to China to set up a factory. After visiting more than a dozen cities, Dr. Stemm felt that the fir trees on both sides of Liuhe Pond in Taicang were like the black forest in his hometown, with a “feeling of home”, and his heart was happy, so he decided to stay, thus becoming the first German company to land in Taicang.

Under the active promotion of Dr. Stam, Taicang has gradually been known by German companies, and Kern-Liebeus’ partners, suppliers and companies of Dr. Stam’s friends have been pouring in.

“It can be said that the settlement of Kern-Liebeus is an important foundation for laying the” town of German enterprises “in Taicang.” Duan Yueqiang, deputy director of the China Merchants Bureau of Taicang High-tech Industrial Development Zone, said that by about 2000, there were only more than 10 German companies in Taicang, most of which were recommended by Dr. Stemm.

However, with China’s accession to the World Trade Organization, the introduction of German enterprises in Taicang has also accelerated. It is reported that as of 2007, the number of German enterprises gathered in Taicang has reached 100, from 1 to 100, which lasted 14 years; In 2013, Taicang welcomed the 200th German company, and the second 100 companies lasted for 6 years; By 2018, the number of German companies reached 300, and the time was once again reduced to 5 years; In October 2021, the 400th German company in Taicang was born, from 300 to 400 in only 3 years.

Up to now, 487 German enterprises have settled in Taicang, with a total investment of more than 6 billion US dollars and an annual industrial output value of more than 60 billion yuan. Six of Germany’s top ten machine tool companies have settled in Taicang, eight of Germany’s top 20 family companies have invested in Taicang, and 60 German “hidden champions” have settled in Taicang. Taicang has become one of the most intensive and best-developed areas in China with German enterprises’ average output value reaching 14 million yuan per mu.