Authored by: Lou Xianying (Cecilia) , Yang Kaisheng and He Xiaomeng
At the end of 2024, the German Chamber of Commerce in China released its “Business Confidence Survey Report 2024/25” (“the Report”), which highlighted an emerging trend of deeper integration within the business ecosystem among German companies operating in China. Remarkably, 40% of surveyed companies indicated plans to grant greater decision-making autonomy to their China operations, independent of their global headquarters. The Report defines this strategic transformation—driven by evolving domestic market competition and regulatory shifts—as “Localization 3.0.” Our latest practice also suggests that this trend has manifested in various forms, including the increasing appointment of local Chinese talent to senior executive positions and the establishment of independent R&D centers within China. These developments have proliferated among foreign-invested enterprises (FIEs) in recent years.