The licensing agreement signed between a German truck company and the China State Building Corporation in 1981 is among the earliest of its kind, while the first joint venture with a famed German cosmetics company was also signed in 1981.

It came less than a year after the People's Republic of China's first-ever joint venture with a Western company in 1980.

A German commercial vehicles manufacturer signed its first joint venture in 1983, and an automaker's famed JV to produce a "people's car" in China in 1985 led to more than a 50 percent market share for years.

On the other hand, cooperation in the field of construction resulted in Beijing's Lufthansa Center.

To date, more than 2,000 German companies have established operations in China and feel as though they, too, are Chinese companies.

Co-op - Road to the future

The success of cooperative efforts between German and Chinese companies as well as their governments indicates a clear path for the future:

China's per capita consumption of energy is still far less than that of industrialized nations, however, energy efficiency is below Western standards. And because of its size, its absolute requirement for energy has a massive influence on the world market.

Enhanced contact with German technologies in renewable energies, conservation, and efficiency enhancement can bring tremendous benefits to both countries, and also lead to reduced pollution.

In the area of urban transportation, ongoing cooperation will help move more people more quickly and safely by public means, using less energy.

Regarding private transportation in cities, cooperation is expected to result in jointly developed hybrid propulsion systems by 2010.

This is a significant development, keeping in mind the upcoming Beijing Olympics, all the way to the Shanghai EXPO -- appropriately themed "Better City, Better Life" -- and beyond.

Cooperation in the area of international standards will make it easier for Chinese companies to access overseas markets, and Chinese consumers and companies to get the high-quality German products they seek.

At the same time, the safety and financial security of the Chinese people will still be well protected.

German companies, with their great experience in meeting high standards and their knowledge of international standard setting, are excellent partners for both Chinese firms and government.

Trade promotion in China

The German Chamber of Commerce offices in Beijing, Shanghai, and Guangzhou play a strong supporting role in this multi-faceted cooperation process.

German companies in China first came together as a Chamber in 1999. Today, as a part of Germany's trade promotion activities, we help our members and other German companies to procure, purchase, produce, and invest in China.

As part of Germany's investment promotion, the "Invest in Germany" offices assist Chinese companies seeking to invest in Germany in finding appropriate partners.

We also act as the voice of German industry in discussions with the Chinese and German governments.

In response to growing demand in China's second-tier cities and the corresponding opportunities for German companies, we are expanding our efforts in Tianjin, Changchun, Shenyang, Zhongshan, Hangzhou, Suzhou, Ningbo and many other rapidly developing urban centers.

A look at what lies ahead

As we think about a cooperative future, the "Germany and China - Moving Ahead Together" campaign, which Chancellor Angela Merkel has come to Beijing to open officially and is to last through the Shanghai EXPO in 2010, is expected to serve as a vehicle to bring our peoples even closer.

German companies extend their hands to China with the aim of coming up with shared visions and developing and implementing innovative, sustainable solutions to the challenges resulting from China's ongoing urbanization process, as well as contributing to the development of rural areas.

We trust the campaign "Germany and China - Moving Ahead Together" will demonstrate to Chinese consumers and citizens from all walks of life how German ideas, design, technology, innovation, and culture are relevant to them in their day-to-day activities.

German companies welcome the opportunity to broaden research cooperation with Chinese partners. They look forward to continued provision of the appropriate legal framework.

And, as we continue to work with Chinese leaders to improve trade relations, we believe that they are increasingly seeing the protection of intellectual property and the adoption of international standards as being in their own, deepest interest.

We also hope that Chinese companies and investors will become more and more aware of the possibilities and the advantages of investing in Germany, the land in the heart of Europe, which offers access to all of Europe's important markets, an outstanding education system, and a superb infrastructure and knowledge base.

We see Germany and China moving ahead together to seek inspired solutions to mutual challenges that will enhance the lives of people in both countries.

This article was written by Dr. Richard Hausmann, chairman of the German Chamber of Commerce in China and president and CEO of Siemens Ltd, China.