Open government-enterprise communication lies behind Qingdao’s success in attracting German investment.
Qingdao Sino-German Eco-park (Qingdao International Economic Cooperation Zone).
A conducive business environment is crucial for stimulating economic vitality and driving high-quality development. During this year’s National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), commonly known as the “two sessions,” optimizing the domestic business environment once again emerged as an important point of discussion. On March 5, Premier Li Qiang explicitly stated in the government work report that China will “keep working to foster a first-rate business environment that is market-oriented, law-based, and internationalized, thus enabling foreign-funded enterprises to achieve even greater business success in China.” These commitments resonated strongly with Kerstin Kaehler, general manager of the German Enterprise Center in Qingdao, Shandong Province.
“We fully support the Chinese government’s policies and objectives in optimizing business environment,” said Kaehler. She noted that over the years, the center has witnessed Qingdao’s evolution into a prime destination for foreign investment, sustained by its unique geographical advantages, open industrial ecosystem, and improved business climate.
The German Enterprise Center is a multifunctional business complex integrating office facilities, conference venues, and business dining services. It provides one-stop solutions for German and international small and medium-sized enterprises entering the Chinese market.
Bridging Sino-Foreign Business Communication
In 2016, the German Enterprise Center was officially inaugurated in the Sino-German Eco-Park, located in the Qingdao West Coast New Area. As the first ecological cooperation demonstration project between China and German, the eco-park serves as a key gateway and platform for Qingdao’s international opening up and cooperation, attracting many German companies to establish their presence there.
According to data from the Qingdao Government Affairs website, as of November 2024, the eco-park has seen over 40 enterprises from German-speaking countries and regions establish operations there, including Fortune Global 500 companies such as Siemens and Continental AG. Zhang Yunqing, deputy director of the Administrative Committee of the Sino-German Eco-Park, said that since 2024, the park has welcomed in three German-funded enterprises: Qingdao Xisa International Trade Co., Ltd., Siempelkamp Qingdao, and Klueber International Trading (Qingdao) Co., Ltd.
As an intermediary platform facilitating communication between resident enterprises and the Sino-German Eco-Park, the center provides clients with office and conference room rental services. “With increasing numbers of international companies exploring opportunities in Qingdao, our services now extend beyond German businesses. By sharing local resource networks, we offer practical support to small and medium-sized enterprises worldwide, while relaying their needs and suggestions to the park,” said Kaehler.
Over the past decade, Kaehler has seen the center grow. During this time it has attracted over 100 companies from Germany, Japan, the United States, Singapore, and other countries to the park, spanning sectors such as semiconductors, agricultural machinery manufacturing, trade, and consulting. “The center is not merely a physical space but a bridge connecting Chinese and foreign enterprises to foster two-way cooperation. Through professional services, we aim to help international companies discover growth opportunities in the Chinese market while introducing more high-quality industrial resources to Qingdao,” said Kaehler.
In autumn 2024, Kerstin Kaehler (center) participates in the filming of Qingdao's city promotional video.
Dual Advantages
In November 2024, the State Council approved a territorial spatial plan for Qingdao for the 2021-2035 period, officially designating Qingdao as a core northern gateway for opening-up. In Kaehler’s view, as a pivotal coastal hub and port city in China, Qingdao boasts unparalleled geographical advantages. “Qingdao Port, the world’s fourth-largest port, offers a robust international shipping network, providing foreign enterprises with strong logistics support,” she said.
Additionally, Qingdao is endowed with abundant industrial resources and a well-developed supply chain. Kaehler highlighted that the city excels in sectors like smart manufacturing, home appliances and electronics, and rail transit, areas that align closely with the industrial strengths of German companies. “Many German firms chose Qingdao precisely because its industrial ecosystem creates synergistic effects with their businesses,” she said.
The continuous enhancement of Qingdao’s geographical strengths is inseparable from the optimization of its business environment. In recent years, Qingdao has prioritized improving its business environment as a key lever to drive high-quality development, steadily creating a more favorable investment environment for foreign enterprises.
In November 2024, the China (Shandong) Pilot Free Trade Zone Qingdao Area and Sino-German Eco-Park hosted a conference on business environment optimization, alongside the ceremony for appointment of members of the Entrepreneurial Supervision Committee. To fully leverage entrepreneurs’ role in overseeing while participating in business activities, the FTZ Qingdao Area established this committee, appointing 85 entrepreneurs across eight industry categories as supervisory members. As one of these entrepreneurs, Kaehler praised the modest attitude of officials at various levels in Qingdao. “Municipal and district governments here regularly organize roundtables or consultations, allowing companies to voice their concerns, challenges, and aspirations. A few years ago, I was even invited to a meeting at the local People’s Court, where representatives from multiple industries proposed improvements to laws concerning their sectors,” Kaehler recalled.
Open government-enterprise communication is a vital guarantee for sustained business environment improvements. At the meeting, Tang Hua, head of the Business Environment Department of the FTZ Qingdao Area, emphasized that they will further streamline feedback channels, enhance administrative efficiency through “one-stop online processing,” strengthen accountability, and ensure every request from enterprises receives a prompt response.
Kerstin Kaehler (right) shows the Christmas tree ornaments she made with her client at a Christmas-themed event hosted by the German Enterprise Center in November 2024. Photos courtesy of Kerstin Kaehler
Going Global for Win-Win Development
Having lived in Qingdao for nearly a decade, Kaehler has transitioned from an observer and witness of the city’s development to an active participant and contributor.
However, in Kaehler’s opinion, there’s also room for further improvement, such as expediting updates and increasing accuracy on local English-language websites and official social media accounts. “If companies can easily and accurately access essential information about potential investment destinations in Qingdao, it would be better,” said Kaehler.
Not far from the Sino-German Eco-Park lies Qingdao Port, which handled 710 million metric tons of cargo last year. Its bustling scenes often remind Kaehler of her hometown, Hamburg in Germany. Every time she passes by, it not only alleviates her homesickness but also reinforces her confidence in the future of the Qingdao German Enterprise Center.
“I’m 52 years old and have worked and lived in China for 26 years — half of my life,” Kaehler said with a smile. Looking ahead, she hopes to see more enterprises set up operations in Qingdao and for the eco-park to continue thriving in this open market.
