China, Luxembourg Explore Opportunities in Automotive, Clean Technologies Sectors

After a first stop in Beijing, Luxembourg's Deputy Prime Minister and Minister for Foreign Affairs and Foreign Trade, Xavier Bettel, and the Minister of the Economy, SMEs, Energy and Tourism, Lex Delles, continued their economic mission to China on Wednesday 27 and Thursday 28 November 2024, with a stop in Shanghai.

As reported by their respective ministries, the focus here was on the automotive sector and clean technologies.

The two ministers were first received by the Mayor of Shanghai, Gong Zheng, for an exchange on topics of shared interest, particularly those related to the sustainable development of cities and regions. The Luxembourg ministries noted that Shanghai is the world leader in the production of electric vehicles (EV), in addition to being the city with the most EV registrations (1.4 million). Avenues for collaboration were discussed in the areas of research, logistics, clean technologies and tourism. Minister Delles also had a meeting with the Mayor of Changzhou, Sheng Lei, to discuss the province's industrial developments and possible cooperation in the industry.

Ministers Bettel and Delles then participated in demonstrations of cutting-edge automotive equipment. Futurus Technology, an innovator in head-up displays, presented its new generation of products offering augmented reality features to the ministers. Xpeng, an independent automobile manufacturer, focuses on the development, construction and sale of electric and intelligent vehicles. Avenues for collaboration with the Grand Duchy were discussed with both companies. The ministers also had discussions with several companies active in Luxembourg or wishing to strengthen their activity in Europe.

They then participated in a working lunch organised by the Luxembourg Trade and Investment Office (LTIO) in Shanghai, bringing together about ten representatives of large Luxembourg companies active in China.

The Luxembourg Chamber of Commerce, in collaboration with the Ministry of Foreign Affairs and Foreign Trade, the Ministry of Economy and Luxinnovation, subsequently organised the Luxembourg-China Business Forum Shanghai, which brought together more than 80 representatives of Chinese companies and more than 60 representatives of Luxembourg companies. Minister Bettel delivered the opening speech, which was followed by a keynote speech by Minister Delles.

On the sidelines of the forum, the ministers witnessed the signing of three memoranda of understanding between Luxembourg and Chinese companies.

The first day in Shanghai ended with an official reception organised by the Luxembourg Chamber of Commerce in the presence of more than 200 participants from Luxembourg and China. The ministers met with entrepreneurs and the Luxembourg community in China.

The following day, the ministers visited the new CEBI factory, a flagship of Luxembourg industry that has been present in China for 20 years. With the new production lines, the company's workforce in China now stands at 270 employees, bringing the total workforce to 3,300 in thirteen countries.

Moreover, Minister Delles visited the production site of Higer Bus, a company active in the production of electric buses. In the presence of the managers of Demy Schandeler, the minister learned about the production capacities and participated in the handover of the keys for eleven purchased electric buses, which will strengthen the electric fleet in the Grand Duchy in 2025. Minister Delles also attended a reception organised by ChinaLux, where he met with representatives of Chinese companies active in Luxembourg as well as Luxembourg companies active in China.

Minister Bettel noted: "Today, while the geopolitical and geoeconomic landscape has become increasingly complex, Luxembourg remains committed to relations with China that are mutually beneficial, forward-looking, based on mutual respect and a level-playing field. The many exchanges we have had underline the potential for growth and cooperation that exists between Shanghai, the Yangtze River Delta and Luxembourg."

Minister Delles commented: "Shanghai is at the forefront of innovation in many key areas, including green mobility and clean technologies. The decarbonisation of our economy cannot be achieved by acting in isolation. Exchanges with Chinese companies demonstrate a real potential for collaboration, in these areas and many others. By exploring new opportunities, this economic mission has helped to support our companies seeking new partnerships, to create an environment allowing them to establish valuable contacts with leaders in their fields, and to position Luxembourg as a trusted European partner in terms of innovation."

Minister Bettel will conclude the economic mission on Friday 29 November 2024 with a programme in Hong Kong.