Minister President of Bavaria Günther Beckstein

For tourists, the region may be about the breathtaking natural landscape, unique castles and popular events like Oktoberfest. For sports fans, it is the home of European football champions Bayern Munich FC.

For business people, it is an economic powerhouse and the home of several world-famous companies, such as Bayer and BMW, to name just a few.

Yet, the economic backbone of Bavaria is not only composed of those global giants, but its 650,000 small and mediumsized enterprises (SMEs). Operating in a vast range of fields, these SMEs generate 41 percent of the state’s total turnover and account for 50 percent of all investments in the region.

Regardless of size, Bavaria’s companies are known worldwide for their technological innovation.

In recent years, several sectors have become highgrowth industries in today’s hitech world, such as aerospace, IT, life sciences, as well as communications, medical and environment technology.

“Bavaria is the only German state that has an international brand name. A second advantage is Bavaria’s developed infrastructure as it is located in the middle of Europe and has one of the best airports in the world,” said Dr. Markus Wittmann, head of the government-run agency Invest in Bavaria.

“Thirdly, Bavaria’s economic structure needs to be mentioned. Bavaria has the unique combination of being a hi-tech region with a strong production sector,” Wittmann added.

For Bavaria’s Minister President Günther Beckstein, the region’s competitive advantage is in the size of its high-skilled German-speaking workforce.

“The free state has highly qualified labor,” Beckstein said.

The Odeonsplatz is a large pedestrian square on the north side of Munich’s central old town and one of the historic gates into the old town of Munich.

“Bavaria offers not only an entry to the German-speaking region — and therefore the biggest market in Europe, but also a gateway to Central and East European markets. I am convinced that many Chinese companies will use these benefits and will invest in Bavaria in the future,” Beckstein added.

To maintain its strong position in the global economy, Bavaria has developed close partnerships around the world, with Asia assuming greater importance.

Since 2002, the state’s government has attended economic conferences in China to promote Bavaria as an ideal business and investment location.

“Foreign trade, specifically with China, is more and more important. China is our biggest trade partner in Asia and the sixth-most important worldwide,” said the minister president.

Since former Premier Franz Josef Strauss initiated contact between Bavaria and China in 1975, economic ties have grown consistently, with the number of partnerships rising over the years.

From 2002, China has been an important market for Bavarian products. In fact, 20 percent of total trade between Germany and China originates from Bavaria, while 25 percent of all German investments in the Asian country comes from Bavarian companies.

Almost 2,000 Bavarian companies have invested an estimated 13 billion euros in China-related business, making the German state the sixth-biggest trading partner in the country.

“Our exports to China are growing at two-digit figures. The export value of Bavarian goods to China amounts to a total of 5.6 billion euros. Products made in Bavaria with most modern technology are greatly in demand in China,” said Beckstein.

Wittmann sees an even stronger and more balanced trade relationship in the longterm.

“The scenery has changed in the last five years. We are now seeing a lot of interest from Chinese companies of all sizes to invest in Europe. There are successful cases of Chinese companies that have acquired Bavarian companies. Also research is playing an increasing role for Chinese companies in Europe. We are happy to have attracted a few of these large companies and are positive that more will follow,” said Wittmann.

President Beckstein also sees bright economic prospects.

“After 30 years of good relations between the big People’s Republic of China and the small free state of Bavaria, it is possible to see a good future ahead of us. The technologically and economically prospering China and the hi-tech location of Bavaria are excellent partners. It is of bilateral interest to further deepen the economical and political relations,” he said.