In late June, Huazhi International led over 30 students to complete an 11 day international course in Germany and France.

This is not an easy test of learning.

Europe is experiencing a rare heatwave, with temperatures in Paris soaring to 41 degrees Celsius. Some people exclaimed on their social media that "studying at 41 degrees Celsius is not as enthusiastic as anyone else.

Under the high temperature, the students' itinerary was not reduced at all. The classrooms at Munich Business School, Siemens Innovation Center, KUKA's robot production line, Steele's century old factory, the exhibition hall at Mercedes Benz Museum, ESSEC Business School's lecture hall, Herm è s' leather workshop, Schneider Electric's headquarters campus, one stop after another.

The route designed by Huazhi International deliberately allows students to see both the "foundation" of German manufacturing and the "aesthetics" of French business, as well as the equally effective ways European companies respond to cycles.

And all these observations point to the same question: what should we take away when Chinese companies stand at the new crossroads of globalization?

01.

Germany: The Study of 'Slow'

In the first class at Munich Business School, Professor Michael posed a question that silenced the audience: "How many of your companies truly know which stage of Industry 4.0 they are in

The maturity four stage model he presented, which includes seeing, understanding, predicting, and adapting autonomously, is like a mirror that prompts entrepreneurs present to re-examine their digital processes.

At present, only 0.5% to 1% of German companies are able to achieve the fourth stage of "autonomous adaptation", which is about 1 out of every 200 companies.

But what really touched the students was the professor's analysis of the "service-oriented transformation". Airbus no longer sells aircraft, but provides Lufthansa with 'availability of flight journeys'; Xilide provides equipment "availability subscriptions" to builders, with customers paying monthly and equipment damage replaced directly by the manufacturer; MTU Engine Company has completed a fundamental reversal of its profit logic. Shift from 'the more bad, the more money you earn' to 'the less bad, the more money you earn'.

If the impact in the classroom is cognitive in nature, then Dr. Feng Bile's subsequent sharing has pushed this impact to another level.

This business leader, who has worked at Siemens for 38 years and served as president for 13 years, used a set of data to outline the real picture of Sino German economic and trade. The bilateral trade volume is about 260 billion euros in 2025, and Germany's trade deficit with China is 90 billion euros; German companies invest about 160 billion euros in China, while China's investment in Germany is only about 16 billion euros, a tenfold difference.

But numbers are just appearances.

What really made the students hold their breath and concentrate was Feng Bile's recollection of the details of negotiating with the Chinese government to build four nuclear power plant projects. The agreement was signed by four Chinese vice premiers and submitted to the Political Bureau of the Communist Party of China for approval. Siemens is the only company in the world that has signed a letter of intent for cooperation with the Chinese government at the central level

Behind these stories lies a password for a multinational corporation to navigate through a 170 year cycle: strategic resilience.

Siemens, with its diversified business portfolio, has found a point of convergence under different political parties - promoting gas-fired power generation technology for the Trump administration, which values energy, and emphasizing wind and hydrogen energy for the Biden administration, which focuses on new energy. It's not about betting on one direction, "Feng Bile said," but about having cards to play in any direction

When it comes to Chinese companies investing in Germany, Feng Bile gave three suggestions. Take control of the financial system as soon as possible after the merger, retain the original management for at least a period of time and set up a "retention compensation package", and - it is necessary to understand the unique dual committee system in Germany. The members of the supervisory board are divided equally between the Chinese side and the employees, which is a system arrangement that Chinese investors must respect.

If the target company has important business in the United States, Chinese investment may trigger US scrutiny, "Feng Bile said bluntly." Before investing, you must ask yourself: are you willing to give up the US market for this

A student shared their gains on their social media account, and Dr. Feng Bile helped them answer three long-standing questions.

If Feng Bile showed the students the height of "strategy", then the next day when he walked into the Siemens Innovation Center, he brought this cognition to a tangible reality.

Dr. Su and Mr. Langham jointly dismantled Siemens' organizational chassis for the students.

Dr. Su introduced that Siemens positions itself as an "integrated technology company", backed by an annual R&D investment of 6.6 billion euros, 53000 R&D personnel, and over 2600 patent applications per year. Its digital platform Xcelerator has attracted over 880 partners, with over 40% of applications provided by third-party developers.

Langham Man approached from the organizational dimension. After the 2020 reform, Siemens has set up 8 business CEOs globally, each responsible for 5 to 10 countries, breaking the inefficiency of traditional matrix management. The organizational pace of restructuring every four to five years ensures both strategic adaptability and regular rotation of executive positions. There is no traditional HR intermediary role, recruitment is directly driven by the business department. ”Langham Man introduced, "We emphasize 'horizontal leadership' and encourage cross level and cross functional collaboration

The application of digital twin technology in the Spanish high-speed rail project is more convincing: by installing sensors to collect operational data and predicting equipment failures in advance, the operator's on-time performance has increased from 70% to 80% to 99%. This project is initially provided for free and will become an independent business unit after three years, with an annual revenue of 1 billion euros.

70 kilometers west of Munich is Augsburg. The headquarters of KUKA Group is located here.

This company, founded in 1898, started with acetylene lighting equipment and launched its first industrial robot in 1973. Today, it is one of the "four major families" of industrial robots worldwide. In 2022, KUKA will become a wholly-owned subsidiary of China Midea Group.

What the students saw at KUKA was not only a live demonstration of industrial robots, digital twin technology, and intelligent logistics systems, but also a real sample of "Sino German integration".

According to KUKA, the global annual demand for industrial robots is about 300000 units, with the Chinese market accounting for 55% of the global demand. The KUKA European factory produces about 30000 units per year, while the Shanghai and Shunde factories in China produce about 50000 units per year.

In the medical robotics department, a "robot team" system consisting of multiple robots collaborating to complete image scanning, patient positioning, and treatment support is currently in operation. LBR Med, a human-machine collaborative robot used for orthopedic surgery, can assist in bone spurs removal and surgeries on hip joints, spine, and knee joints.

After visiting, a student wrote, "In the past, it was mostly foreign capital acquiring Chinese companies, but now Chinese companies are acquiring century old foreign enterprises. The integration path of KUKA is a hard bone that Chinese companies must tackle in their globalization

In Weiblingen near Stuttgart, the students visited the Steele company, a more typical 'hidden champion'.

Founded in 1926, family owned enterprise, unlisted, with no external shareholders. These labels make Steele stand out in the hustle and bustle of the capital market. But it is precisely this' out of place 'that has kept it firmly at the forefront of the world in the field of garden machinery for nearly half a century. In 2023, the revenue will be 5.5 billion euros (approximately 50 billion yuan), with over 20000 employees worldwide and business coverage in more than 160 countries.

The students learned that 70% of Steele's value chain is self-developed and self-made by the company, and key components such as engine cylinder blocks are all self-produced. In terms of power technology transformation, the company predicts that gasoline power will continue to dominate in the next 10 to 15 years, while jointly developing ultra-thin and lightweight batteries with Chinese partners.

In the future, China will also give birth to many hidden champions - commonalities: long termism and focus on advantages, trust and loyalty from both families and management

This statement may explain the underlying code of German manufacturing: not technology, not capital, but an almost stubborn "slowness".

At the Mercedes Benz Museum, Gil, the head of the automotive industry, brought another shock to the students. His sharing openly acknowledges Mercedes Benz's predicament. The past year has been the worst year for Mercedes Benz's sales, and all markets have not met expectations. Pure electric models account for only 6% of the Chinese market, and the company's market value is at its lowest level in history.

But what really alerted the students was a set of data: the global market share of EU cars decreased from 25% in 2021 to 15% in 2024; 55% of European consumers say they can imagine buying Chinese brand cars. However, the overall marketing investment of Chinese car companies accounts for only about 2% of the total marketing expenditure of Chinese enterprises, while the automotive industry accounts for 15% of the overall marketing expenditure in Europe.

A product doesn't necessarily sell well, "Gil said bluntly," many Chinese car companies underestimate the cost of promoting in overseas markets

In the subsequent questioning session, a student asked, "What would be the most important advice for Chinese car companies

Gil's answer is brief: "Trust. Trust is a prerequisite for entering the European market. Without trust, it is difficult to achieve sales conversion

02.

France: Compound interest on 'time'

If the German segment helped students understand the value of 'slow', then the French segment showed them the compounding of 'time'.

In the classroom of ESSEC Business School, the underlying logic of luxury management is dismantled one by one. Data shows that in the French CAC40 index, the top three companies by market value are all luxury brands. LVMH Group has an annual revenue of 80.8 billion euros, with the French domestic market accounting for only 8%, the United States accounting for 26%, and Asia (mainly China) excluding Japan accounting for 26%.

A counterintuitive insight made the students ponder: the true main consumers of luxury goods are the middle class, not the top billionaires. The middle class's purchase of luxury goods has a "Veblen effect" - by imitating the consumption behavior of the upper class to enhance social status. Nordic countries have a relatively even distribution of wealth, weaker desire for comparison, and the lowest demand for luxury goods.

Another professor's course on strategic decision-making also resonated. He cited Nestle Nespresso as an example: when faced with questioning from the CEO, the project leader Gaia falsely claimed to have sold 100 machines (in reality, only 58) in order to seize the opportunity, ultimately gaining the chance to implement a new strategy. Major decisions are often full of uncertainty, successful decisions are often simplified as' hindsight ', and the pain and risks of decision-making at the moment are often underestimated

The case of IKEA allows students to see another face of innovation. Flat transportation originated from insurance companies refusing to insure finished furniture, forcing it to be disassembled into flat packaging; Outsourcing production was forced to shift to Poland due to a joint boycott by Nordic suppliers; Due to the heavy burden on the warehouse department, the store manager's statement of 'let them take it themselves' gave rise to the customer self pickup model. IKEA's many iconic innovations are not top-level designs, but 'last resort' measures taken to solve specific survival problems

A student wrote after class, "It turns out that 'forcing up Liangshan' is also a form of strategy

At the Herm è s Library, the General Manager of Herm è s Global Business gives lectures to the students.

Among the current customer base, only 5% are VIP customers (VIC), but their consumption contribution accounts for 40% of the industry's total. Starting from 2023, the luxury goods industry has lost 50 million end customers due to factors such as rapid price increases, unstable quality, and supply chain outsourcing leading to quality loss.

Hermes' response is to "go back to the source" - insisting on 100% handmade production and deliberately controlling production. The students learned that Herm è s has a specialized school to inherit the "safe box craftsmanship" and achieve vertical integration from raw materials to finished products. Brands do not pursue short-term profits, but rather maintain the long-term value of their products.

A student sighed after class, "When we are manipulating traffic and pricing in the live broadcast room, Herm è s is screening customers. This is not arrogance, it is strategy

Schneider Electric's visit allowed the students to see a sample of the transformation of traditional industrial giants.

The steel plant, established in 1836, is now a global leader in energy efficiency management. In 2024, the revenue will exceed 40 billion euros and there will be 160000 employees worldwide. The energy-saving renovation results of the headquarters building are shocking: the energy consumption has decreased from 150 kWh/square meter · year to 36 kWh/square meter · year, a decrease of over 75%, and the investment payback period for the renovation is only 1.5 to 3 years.

In terms of technological innovation, Schneider has taken the lead in launching a new generation of medium voltage equipment insulated with dry air, replacing the highly greenhouse effect sulfur hexafluoride (with a GWP 240000 times that of carbon dioxide). The Beijing Yizhuang factory has been awarded the title of "World Lighthouse Factory".

Schneider's transformation path is clear: from selling products to connecting equipment to providing services, emphasizing the value of full lifecycle services. Its open automation platform breaks down protocol barriers between PLC manufacturers, promotes international standard IEC 61499, and achieves cross brand hardware interconnection.

At the Chinese Chamber of Commerce in France, students attended a closed door exchange meeting. By 2025, France will attract 1878 foreign investment decisions and create or maintain 47000 jobs. Chinese investment is active in the field of batteries, and Far East has established joint ventures with Renault, Minshi Group and Renault, L'Oreal and Xiamen Tungsten Industry.

Industrial and Commercial Bank of China Paris Branch shared three stages of serving Chinese enterprises to go global: from the M&A boom to compliance rectification, and then to steady development. JD Logistics introduced its localized layout in Europe, with a French team of about 700 people and a nearly 50-50 ratio of Chinese and foreign employees, achieving "morning ordering and afternoon delivery" in the Greater Paris area.

Tax experts remind that the standard corporate income tax rate in France is 25%, and the total labor cost accounts for approximately 140% to 145% of gross wages. The French labor law system is extremely complex, and it is necessary to sort out the compliance framework from the initial stage.

03.

Two answers, one follow-up question

11 days, two countries, six companies, one French Chinese Chamber of Commerce exchange, two business schools.

Returning to the opening question. What should we take away when Chinese enterprises stand at the new crossroads of globalization?

The answer may be hidden in the feedback from the students.

Student J wrote on his social media account, "This is my first time stepping into the land of Europe... Europe, which used to be filled with hidden champions everywhere, is gradually making a historical handover. We have also gradually transformed from looking up everywhere to becoming us who dare to criticize, face challenges, and compete

Student L recorded, "Innovation is not about making something out of nothing, but more about borrowing, restructuring, and cross-border applications

A student summarized the gains of this trip more systematically: "Breaking through the information cocoon and understanding what is most precious. From the perspective of technology and commercialization, it is basically close to the overall level of England, Germany, and France. However, there is still a gap in AI basic research, biomedicine, and heavy precision industrial manufacturing, which is also the basis for cooperation with them

After the trip, the student sent a private message to our project manager, saying, "Thank you for your help and care all the way. You have coordinated and arranged the whole process, which has given everyone a sense of relaxation. The atmosphere has always been very happy

The more you go abroad, the more you understand China.

Germans have proven a truth over a hundred years: true competitiveness does not lie in how fast you run, but in how long you persist in the right direction. The French have proven through generations of inheritance that the deepest moat is not a technological patent, but a obsession with quality and a reverence for time.

For the more than 30 students of Huazhi International, the greatest value of this study tour may not be how many methodologies it brought back, but rather a way to re-examine oneself and the world.

Traveling through a cycle is not about avoiding wind and waves, but about learning to maintain direction in the midst of them.

The intelligent opening of the global new situation requires not only technological catch-up, but also cognitive breakthroughs.

2026 Global Business Evolution Journey

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