German firms are increasingly recognizing China's role as a global innovation leader.

BERLIN, March 8 (Xinhua) -- China is entering a new development phase characterized by quality improvement, technological upgrading and structural optimization, a transition that could reshape both its domestic economy and the global industrial landscape, Clemens Schuette, chairman of the German-Chinese Business Association, has said.

In a recent interview with Xinhua, Schuette noted that China has maintained robust economic growth for decades.

Growth, he noted, is now measured more by structural improvement and long-term quality. "The emphasis is shifting from sheer GDP growth to efficiency, productivity, technology and sustainability," he said.

Highlighting the strategic importance of emerging technologies, he said, "China is placing greater emphasis on artificial intelligence, quantum technology and biotech research. This is not only a technical choice but a long-term strategic commitment."

As China's market continues to upgrade, he added, new demand and collaboration opportunities are taking shape, encouraging innovation and higher-level cooperation globally.

Amid rising protectionism in some parts of the world, Schuette emphasized China's commitment to credible and reciprocal openness, saying effective implementation could help strengthen the global economy and foster win-win cooperation.

Reflecting on China-Germany economic ties, Schuette said China became Germany's largest trading partner again in 2025, underscoring deep structural interdependence.

"German companies produce in China to serve local demand, while Chinese intermediate goods support German manufacturing. Over 5,000 German firms operate in China, and some 3,000 Chinese companies in Germany," he noted.

"China has evolved from a low-cost manufacturing base into a major market and an important innovation hub," he added, citing BMW, Volkswagen, Siemens and BASF as examples of companies expanding local research and engineering capacities.

German firms are increasingly recognizing China's role as a global innovation leader.

"Many companies are expanding cooperation with Chinese partners not only to remain competitive in China but also to benefit globally," Schuette said, noting that some firms are accelerating product cycles in China and exploring third markets together.

Looking at global governance, Schuette said that China continues to support multilateral frameworks such as the World Trade Organization and the United Nations.

He also pointed to China's importance in the global green transition. "Without China's participation, global climate goals cannot be achieved," he said, citing the country's leadership in renewable energy and electric vehicles.

"China plays an active and shaping role in the global economy," Schuette said, adding that in an era of uncertainty, stability, rational cooperation and predictable partnerships are increasingly valuable for sustaining global economic stability.