Taiwan’s Representative to Germany Visits Cologne Hardware Fair, Discusses Economic Outlook

(Germany) Reported by Kuo Fang-Lin, Translation by Sherry Chen

Taiwan’s Representative to Germany, Dr. Klement Gu, visited the International Hardware Fair Cologne on March 3, stopping by the Economic Daily News exhibition booth (Hall 3/11 A003) and touring Hall 4.1 to show support for Taiwanese companies participating in the event.

During the visit, Dr. Klement Gu met with exhibitors to learn about the performance and market outlook of Taiwanese firms at the trade fair. He also shared perspectives on Germany’s current economic conditions and the evolving industrial footprint of Taiwanese businesses in the country, while outlining potential opportunities for Taiwan–Germany economic and trade cooperation.

Dr. Gu noted that Germany’s economic structure is highly dependent on trade, with exports and imports together accounting for roughly 80% of gross domestic product (GDP). As a result, global developments have a pronounced impact on the country’s economic performance. In recent years, Germany has faced mounting challenges to its industrial productivity and economic growth amid intensifying U.S.–China competition, shifting geopolitical dynamics, and the restructuring of global supply chains, leaving the outlook for growth subject to continued uncertainty.

On the domestic front, consumer behavior has also begun to shift as economic sentiment turns more cautious. Dr. Gu observed that approximately 30% to 40% of German consumers are now prioritizing essential spending, while adopting a more conservative approach toward discretionary purchases.

In response to these pressures, the German government is advancing a series of reform initiatives, including expanded public investment, streamlined administrative spending, and stronger support for the development of artificial intelligence (AI) industries. By integrating advanced technologies into the manufacturing sector, the government aims to enhance national productivity and industrial competitiveness. These policies are expected to boost productivity by around 7.8% and generate approximately €56 billion in added economic value.

Turning to the development of Taiwanese businesses in Germany, Ku noted that around 250 Taiwanese companies currently maintain investments or operations in the country. Of these, roughly 120 firms are concentrated in North Rhine–Westphalia, forming the largest cluster of Taiwanese enterprises in Germany. More than 30 companies are based in Hamburg, while others are distributed across regions including Baden-Württemberg, Bavaria, Berlin, and eastern Germany.

Overall, Taiwanese investment in Germany spans a diverse range of industries, including information and communications technology (ICT), computer hardware, machinery and equipment, bicycles, biotechnology, food products, and other sectors.

In the computer industry, major Taiwanese brands such as ASUS and Acer are the representative businesses. In the machinery sector, companies including HIWIN Technologies and Fair Friend Group are also active, underscoring Taiwan’s competitive strengths in high-tech industries and precision manufacturing.

Dr. Gu further noted that Taiwan possesses strong purchasing power and a highly integrated industrial supply chain, with its global competitiveness ranking rising to sixth place worldwide. Amid the shifting global economic conditions and ongoing supply chain restructuring, Taiwan has emerged as an important partner in the international "de-risking" strategy.

He encouraged European companies to strengthen cooperation with Taiwan and welcomed greater European investment in the country to jointly expand market opportunities.

Dr. Gu also emphasized that Taiwanese companies have long built international trust through a reputation for quality and integrity, creating mutual partnerships while strengthening industrial resilience and competitiveness in global markets.

Currently, Taiwan is Germany’s fifth-largest trading partner, with bilateral trade exceeding USD 20 billion annually. Dr. Gu highlighted the strength and perseverance of Taiwanese enterprises in global markets, encouraging businesses to continue pursuing growth, noting that “today’s small and medium-sized enterprises may become tomorrow’s industry leaders.” He expressed strong confidence in the future of Taiwan–Germany economic and trade cooperation.