East China's Shandong province marks nearly four decades of ties with Germany. [Photo/Dazhong News]

During German Chancellor Friedrich Merz's recent visit to China, the longstanding economic partnership between the two countries was highlighted. The high-level business delegation accompanying Merz emphasized Germany's strong interest in bilateral trade relations.

Shandong, a major industrial hub in East China, has developed ties with Germany for nearly four decades. Since Henkel Loctite became the first Fortune Global 500 German company to establish a presence in Shandong in 1987, over 300 German-invested enterprises have set up operations across the province, focusing on manufacturing, retail, and technical services. Industry giants such as Volkswagen, BASF SE, Siemens, and ThyssenKrupp have expanded into Qingdao, Jinan, and Yantai.

Festo is a prime example. The global automation leader entered Shandong in 2007 and now its largest production center is in Jinan, generating nearly 4 billion yuan ($583.51 million) in annual output.

"We invest over 100 million yuan in Shandong annually. About 70 percent of our products for the Chinese market are now made in Jinan," said Jiang Zuolin, president of the Greater China Business Area.

In 2025, Shandong's imports and exports with Germany reached 66.25 billion yuan, up 8.8 percent year-on-year, with actual utilized investment increasing a remarkable 240.3 percent.