German center deal inked for Qingdao

The Eighth German Center, expected to be established in Qingdao in East China's Shandong province, will incorporate the city and the wider region into the worldwide German Center Network, according to a strategic alliance agreement signed in the provincial capital city Jinan on Friday.

The agreement was signed between Qingdao municipal government and the German Center Shanghai, one of the projects since 1995 by the German government aimed at providing a springboard for small and medium-sized German companies to venture into international markets.

According to the agreement, the center will be located in the Sino-Germany eco-park in Qingdao Economic Technological Development Zone in the west of the city and will encompass a total building area of 66,300 square meters.

To meet the standards and requirements of the center, a joint advisory committee made up of experts from both countries will provide consultancy services regarding planning, design, construction and the management operation of the German Center buildings.

"The idea of 'ecological criteria, low carbon industry, green city' will be implemented thoroughly in developing the center by both the governing committee of the development zone and the German Center Shanghai in an effort to shape the Sino-German eco-park into a reference project of sustainable development and recycling economy," said Qingdao Party Chief Li Qun.

"The center is expected to be a unique landmark with heavy German influence alongside the ongoing construction boom on the peninsula," said Li, who is also a member of the Standing Committee of the Communist Party of China Shandong Committee.

The construction of the German Center will adopt the latest German standards with more rigorous quality control, lower C02 emissions and higher energy- and water-efficiency, Li said.

A large amount of building materials and facilities will be imported from Germany or procured from China-based German subsidiaries.

"I am confident about the fact that we will have a German Center in Qingdao. Qingdao is developing toward a positive direction with sound infrastructure and improving living standards for a better green environment," said Christian Sommer, chief executive officer and chairman of the German Center Shanghai, told China Daily in a telephone interview on May 27.

Once in full operation, the German Center Qingdao will offer German enterprises small to large office leases, consultancy services, conference facilities, a business center, a startup company incubator and, most important, a bridge between German enterprises and local communities.

"Apart from attracting German investment and helping it to grow, the center will also make a contribution to introducing more advanced technology and management practices in various sectors such as renewable energy, energy reduction and environmental protection to Qingdao," Sommer said.

The German Center Qingdao will be the third one of its kind in China after Beijing and Shanghai and "the first one ever in a second-tier city in China", Sommer added.

The project is a major one for the Sino-German eco-park in Qingdao. It was first discussed as a pilot project in the area of long-term urban planning and assessed as a significant project in German-Chinese cooperation at the first German-Chinese government consultations on June 27 and 28, 2011.

Despite the European Union's continued debt woes, Qingdao remains an appealing destination for German investment, which surged 576 percent to $3.2 million in 2011. The latest investment includes a newly established food demonstration laboratory in December, a joint project by TV Rheinland and China Certification and Inspection Group.