Germany Boosts Investment and Innovation in Asia: From China Ties to Bangkok's Porsche Design Tower
Germany's Expanding Role in Asia: Major Investments, Sustainable Ventures, and Luxury Real Estate Developments
Welcome to the Germany in Asia newsletter. This edition highlights Germany's growing investments and groundbreaking projects in Asia, from increased FDI in China and the debut of Asia's first Porsche Design Tower in Bangkok to advancements in recycled plastics and semiconductor manufacturing.
Top Stories
Germany’s Investment in China Surges Amidst Efforts to Balance Economic Dependencies
Germany's investments in China are increasing despite efforts to mitigate dependence on the Asian nation. Official data reveals that German foreign direct investment (FDI) in China is set to double this year, with €7.28 billion invested in the first half of 2024 alone. This growth occurs even as Germany's "Strategy on China" emphasizes reducing reliance on China, acknowledging its role as a "systemic rival" while striving to maintain economic ties.
Key sectors, notably automotive and chemicals, drive this investment surge. The automotive sector's substantial business with China—where about a third of new German cars are sold—illustrates the deep economic interconnection. Despite calls for diversification and the "China plus one" strategy, many German firms find China indispensable due to its market size and specialized supply networks.
A recent survey indicates that while some firms are contemplating or executing exits from China, a majority plan to increase investments to remain competitive. However, diversifying away from China poses significant costs and challenges. The EU’s tariffs on Chinese electric vehicles and the growing geopolitical tensions highlight the delicate balance Germany faces in managing its economic relationship with China while mitigating risks.
In contrast, global FDI in China has seen a sharp decline, reflecting broader concerns about investment risks in the region. Despite this, Germany and the US continue to invest heavily, underscoring the complex dynamics of global economic interdependence.
Source: DW
Porsche Design Unveils Asia's First Porsche Design Tower in Bangkok
Porsche Design, in collaboration with Thailand’s Ananda Development, has announced the Porsche Design Tower Bangkok, marking Asia’s debut of the luxury residential project. Set to be completed by the end of 2028, the tower will feature 22 exclusive duplex and quadplex ‘Sky Villas’ ranging from 525 to 1,135 square meters, with prices starting at USD 15 million and reaching up to USD 40 million.
The tower is the third Porsche Design real estate development globally, following Miami and Stuttgart. It boasts innovative features such as "Passion Spaces," luxury garages tailored for residents’ car collections, and a spiral ramp called “The Loop” for direct car access. The building’s design includes a dynamic façade inspired by the Porsche 911 Targa roof and an “X-Frame” structure reminiscent of the Porsche Mission R concept car. Additionally, the top of the 95-meter tower will be highlighted by “The Crown,” a light feature drawing inspiration from Porsche sports cars.
Located on Sukhumvit 38 in Bangkok’s upscale Thonglor area, the tower promises a blend of luxury living and convenience, offering access to premium amenities and vibrant local attractions.
Source: Porsche
Cirplus Expands to India with New Entity to Boost Recycled Plastics Market
Cirplus GmbH, a Hamburg-based platform for trading recycled plastics, has launched Cirplus India Pvt. Ltd. in Mumbai, marking its entry into the Indian and broader Asian markets. This strategic move aims to meet the rising demand for recycled plastics and support regional sustainability goals by fostering a circular economy. Ramesh Parasuraman, with 30 years of experience in the plastics industry, has been appointed managing director. He is tasked with enhancing the availability and quality of recycled plastics, addressing the need for compliance with tightening regulations on recycled content in various sectors.Christian Schiller, Cirplus' founder and CEO, highlighted the significance of this expansion in transforming the global recycled plastics landscape and creating business opportunities in India and Asia. Cirplus India will offer services such as supplier matching, material aggregation, logistics, and quality control, and will leverage digital infrastructure for managing complex material streams.
Source: Recykling Today
Urgent Recall of Jelly Candy Due to Choking Hazard
A recall has been issued for two types of jelly candies sold at Go Asia stores due to a severe choking risk. The affected products are "Orange Pulp Jelly" Jelly Cups and "Jelly Straws Assorted Flavour" from Taiwan Gourmet. These products, which have gained popularity through TikTok trends, pose a choking hazard because of their gel-like consistency, which can easily get lodged in the throat. The recalled Jelly Cups have a batch number of 20231201Q01 and a best-before date of August 31, 2024. The Jelly Straws do not have specific batch numbers or best-before dates but are included in the recall due to the same safety concerns. Customers who purchased these items are advised not to consume them and can return them to any Go Asia store for a full refund.
Source: Ruhr Nachrichten
Government
Chancellor Scholz Expresses Condolences to Pakistan Following Devastating Floods
On August 22, 2024, German Chancellor Olaf Scholz sent a heartfelt condolence telegram to the Prime Minister of Pakistan, Shehbaz Sharif, in response to the devastating floods that have ravaged the country. The floods, which have caused widespread destruction and loss of life, have been among the most severe in Pakistan's recent history, affecting millions and displacing large populations.
In his message, Scholz expressed deep sorrow and sympathy for the victims of the disaster, offering condolences to the families of those who lost their lives and extending wishes for a swift recovery to those injured. The Chancellor's message underscores Germany's solidarity with Pakistan during this difficult time and highlights the ongoing concern for the humanitarian impact of climate-related disasters globally. This gesture reflects the broader international support and empathy towards Pakistan as it deals with the aftermath of this natural catastrophe.
Source: Bundesregierung
German Development Minister Svenja Schulze Advocates for Sustainable Supply Chains in Pakistan's Textile Industry
On August 20, 2024, German Development Minister Svenja Schulze began a three-day visit to Pakistan, focusing on promoting sustainable and fair supply chains in the textile industry, a key exporter to Europe. During her visit, Schulze inspected factories like Kohinoor Textile Mills and Anwar Khawaja Industries, discussing the implementation of Germany's Supply Chain Act with local businesses, workers, and officials. The law aims to ensure humane working conditions, fair wages, and environmental responsibility. Schulze's mission highlights Germany's commitment to supporting both Pakistani and German companies in meeting these standards to enhance sustainable global trade.
Source: BMZ
Highlighting Asian Members in the Women's Military Peace Operations Course (WMPOC)
The inaugural Women's Military Peace Operations Course (WMPOC) in Germany brought together female officers from eleven nations, including participants from Nepal, Mongolia, and Jordan. These Asian representatives, alongside their peers from other regions, underwent a three-week training at the Julius-Leber-Kaserne in Berlin, aimed at preparing them for leadership roles in United Nations (UN) peacekeeping missions.
This training included modules on leadership, empowerment, and networking, as well as essential knowledge on UN peace missions, such as civilian protection and the elimination of sexual violence in conflicts. The course was part of Germany's ongoing commitment to increasing female participation in UN missions, aligning with the UN's goal to have 25% of its peacekeeping roles filled by women by 2028. The presence of officers from Nepal, Mongolia, and Jordan reflects the growing involvement of Asian nations in global peace and security initiatives.
Source: BMVG
EU Approves Major Investment in New Chip Factory in Dresden by TSMC, Bosch, Infineon, and NXP
The European Commission has approved state aid for a significant investment by Taiwan Semiconductor Manufacturing Company (TSMC) and its partners Bosch, Infineon, and NXP to build a new chip factory in Dresden, Germany. The project involves an investment of over €10 billion, with the German Federal Ministry for Economic Affairs and Climate Action (BMWK) planning to support the development with up to €5 billion, in line with the European Chips Act. This new facility, operated by TSMC's European subsidiary ESMC, is expected to strengthen Europe’s semiconductor production capabilities, bolster supply security, and create up to 2,000 high-tech jobs, contributing to the region's economic resilience and technological sovereignty. The factory is set to start operations by the end of 2027, with a production capacity of 40,000 wafers per month by 2029, targeting the automotive and industrial sectors.
Source: BMWK
Armed Forces
Navy
German Navy's Role in Climate Research: Deploying Argo-Floats to Monitor Ocean Health
The German Navy is playing a crucial role in global climate research through its participation in the Indo-Pacific Deployment 2024. The supply ship Frankfurt am Main is tasked with deploying eleven Argo-Floats, advanced autonomous buoys that collect vital oceanic data such as temperature and salinity up to depths of 2,000 meters. These floats drift at 1,000 meters for nine days, gathering data before resurfacing to transmit their findings. This data is essential for monitoring ocean health and understanding long-term environmental changes.
The Navy ensures that these instruments are positioned in strategically important but often remote areas, far from regular shipping routes, where conventional research missions are infrequent. The operation is supported by the Federal Maritime and Hydrographic Agency (BSH), which provided thorough training for Navy personnel and supplied the sophisticated equipment. This mission highlights the German Navy's dual role in ensuring maritime security and contributing to global climate research through the continuous collection and analysis of oceanic data, reflecting the collaboration between military and scientific communities for planetary health.
Source: Marine
Thank you for reading this edition of the Germany in Asia newsletter. We appreciate your interest in how Germany's strategic investments and partnerships are shaping the future of global collaboration and sustainability.