Empowering German Industry: Supporting Companies to Navigate China’s Dynamic Energy Market
10th Meeting of German Local Business Advisory Council of the Energy Partnership took place in Shanghai
On 22 October 2025, the Sino-German Energy Partnership hosted the 10th meeting of the German Local Business Advisory Council at the German Energy Center in Shanghai. The meeting served both as a platform for dialogue between German companies in China and representatives of the German government, and as an opportunity to gain insights into recent developments in China’s energy sector.
China’s energy market is transforming rapidly, driven by the growth of renewables, advances in hydrogen, falling technology costs, and by digitalisation, grid upgrades, and new storage solutions. Together, these developments are reshaping the competitive landscape and creating both opportunities and risks for projects, supply chains, and market access.
To address this topic and support German business, the Sino-German Energy Partnership, on behalf of the German Federal Ministry for Economic Affairs and Energy (BMWE), organised the 10th meeting of the German Local Business Advisory Council on 22nd October at the German Energy Center in Shanghai. The meeting gathered 16 German companies to share their perspectives on how these changes affect their business in China, the key challenges they encounter, the implications for international trade dynamics, and what kind of support from the German government and the Sino-German Energy Partnership would be most valuable.
The discussion focused on energy procurement and decarbonization challenges in China, highlighting rising cost pressures, the need for affordable access to renewable electricity, and uncertainties surrounding regulatory frameworks such as the national emissions trading system. Participants discussed the balance between maintaining competitiveness and meeting climate goals, the limited incentives for green electricity use, and the lack of clear standards in emerging sectors such as hydrogen. Other key themes included difficulties in long-term investment planning amid economic uncertainty, the role of digitalization and AI in optimizing energy use, and the importance of closer Sino-German cooperation and mutual learning in the energy transition.
Following this meeting, the Energy Partnership will integrate the key insights from the discussion into the bilateral dialogue and its activities. This includes strengthening support for German companies in securing affordable and reliable access to sustainable energy, enhancing understanding of Chinese policy developments such as the national emissions trading system, and exploring the interlinkages between artificial intelligence, energy, and policy.
About the Local Business Advisory Council
First held in May 2018, the Local Business Advisory Council meetings are a key instrument for the B2G exchange between German companies and the German Federal Government within the framework of the Sino-German Energy Partnership. The annual meetings enable German companies to communicate challenges and barriers in the Chinese energy sector directly to German government representatives. The results are integrated into the activities of the Energy Partnership on all levels, including the political dialogue, business roundtables, and expert workshops.
Topics vary depending on the focus of the political bilateral cooperation and developments in the Chinese market. Over the last six years, the topics discussed included access to green electricity, green supply chains, life cycle cost assessment, planning of integrated energy concepts, and implementation of decentralised electricity generation in urban districts and industrial parks.