Taicang, a county-level city in Jiangsu Province, has earned a reputation as a hub for German businesses, with over 500 German-owned companies calling it home. German companies are mainly distributed in the fields of automotive parts, industrial machinery, aerospace, and other industries. The automotive parts sector has a clear advantage, with 70% of a car's parts and 30% of its core components being produced by manufacturers in Taicang. The automotive parts sector has formed an industrial cluster with companies complementing each other.
One of the prominent German companies operating in Taicang is Schaeffler, a leading supplier of precision components for the automotive sector. With a history of innovation and technical expertise, Schaeffler has established itself as a trusted partner for many major car manufacturers around the world. The company's presence in Taicang not only enhances its global reach but also contributes to the town's growing reputation as a center for automotive excellence.
Another notable German company in Taicang is Haering 30 years ago, Kern - Leribeus became the first German-funded enterprise to settle in Taicang. 10 years later, the Haering factory was located on Nanjing East Road in the core area of the high-tech zone, covering 150 acres of land. The factory building is a bright yellow color, very eye-catching. Along that road, bus stops are named after companies, including companies in the Haering Group's supply chain, TOX next to it, Unite Electronic five or six hundred meters away, and Schaeffler Group and Kern - Leribeus after the traffic lights. BorgWarner is also only 3 kilometers away.
The Haering Group is a manufacturer of precision parts, supplying parts for car engines and clutches for nearly 60 years, such as fuel nozzles and electric axles. Its largest customer is Bosch, to the point that now one out of every three cars in the world can find parts produced by the Haering Group. After the epidemic, between March and December 2023, Dr. Haering came to China 7 times, and his Taicang company increased its capital by 200 million RMB last year, investing 100 million US dollars in a new project for lightweight electric motor spindles.By setting up operations in Taicang in 2004, Haering has access to a skilled workforce and state-of-the-art facilities, allowing it to expand its reach in the Chinese market.
The combination of German engineering expertise and Chinese manufacturing capabilities has created a thriving ecosystem for automotive parts production in Taicang. With companies like Schaeffler and Haering leading the way, Taicang has become a magnet for foreign investment and a key player in the global automotive supply chain.
The success of German companies in Taicang not only benefits the local economy but also strengthens the ties between China and Germany. By fostering collaboration and exchange of knowledge, these companies contribute to the development of the automotive industry and drive innovation forward.
As Taicang continues to attract more German investment, the town's reputation as a center for automotive excellence will only grow stronger. With companies like Schaeffler and Haering setting the standard for quality and innovation, Taicang is well-positioned to maintain its status as a leader in the automotive parts industry for years to come.
Looking at the entire Taicang, German investment is also "rising against the trend." According to the statistics of the Taicang Business Bureau, the actual investment data shows that foreign investment is actually growing in China.
In 2023, the total foreign investment in Taicang was over 500 million US dollars, of which German investment was 245 million US dollars, accounting for 48% of the total. Compared to previous years, German investment before the epidemic averaged just over 100 million US dollars, accounting for only around 17%.
In the automotive sector last year, as the market for fuel vehicles shrank and other foreign car companies exited the Chinese market, German companies in the upstream of the industrial chain filled the gap in related parts.
In 2023, the sales of the Haering Group's Taicang factory reached the highest level in 20 years, reaching 1.12 billion RMB.
Taicang's future plan is to move from enterprise clustering to industrial upgrading, followed by talent upgrading, and ultimately achieve intellectual property rights.
Taicang is a 45-minute drive from Shanghai Hongqiao, which also brings great convenience to Taicang's foreign trade. The location advantage of Taicang and the clear environment in the city are believed to attract more foreign enterprises to Taicang.
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