How can Chinese manufacturers help Germany's industrial transition?

Germany's energy-intensive industries face an increasingly difficult challenge: cutting carbon emissions while remaining internationally competitive. 

In 2025, their production was 17.8% below 2021 levels, according to Germany's federal statistical office.

At the Hydrogen Technology World Expo and Carbon Capture Technology World Expo in Hamburg, Chinese manufacturers were among the companies showcasing technologies that could help Germany's industrial transition.

Hydrogen is a major part of those ambitions. Berlin projects annual demand for hydrogen and its derivatives of 95 to 130 terawatt-hours by 2030, with between 50% and 70% expected to come from imports.

Cleaner hydrogen

China accounts for around 60% of global electrolyzer manufacturing capacity, Reuters reported. Electrolyzers use electricity to split water into hydrogen and oxygen, providing a way to produce cleaner hydrogen when powered by renewable energy.

Cooperation is already taking shape. German manufacturer Enapter began having key electrolyzer components manufactured in China in August through Runqing Hydrogen Technology, part of the Chinese Runshihua Group. Enapter says the partnership allows production to scale while reducing fixed costs.

Walter Mayr, managing director of SLG Hydrogen's Spanish branch, highlighted China's price advantage.

"The Chinese produce green hydrogen production systems for less than half the price of the European," he said.

But lower equipment prices do not guarantee commercially viable hydrogen. Electricity costs, shipping, infrastructure and securing customers remain major obstacles. European manufacturers have also raised concerns about competition from cheaper Chinese imports.

'Openness leads to advancements'

China's consul general in Hamburg, Lin Dong, said more than 50 Chinese companies attended this year's exhibition, up from more than 40 last year. He argued for cooperation rather than trade barriers.

"Openness leads to advancements of technology, and isolation only ends in backwardness," he said.

Hydrogen, however, cannot remove every industrial emission. Cement production releases carbon dioxide during the chemical process itself, regardless of the energy source. Carbon capture technology offers a potential way to intercept those emissions before they enter the atmosphere.

The European Union is targeting an annual underground CO₂ injection capacity of 50 million tons by 2030. Achieving that goal will also require capture facilities, transport networks and substantial investment.

Chinese carbon capture company Tonexus says its technology is designed to reduce energy consumption during the capture process. Its general manager, Dong Hongfeng, warned that investors remain cautious about long payback periods and financial risks.

For Germany's industrial sector, the challenge is no longer simply developing cleaner technology, but making it affordable and practical on a commercial scale.