Fabian Hanler spent 10 years in establishing the Chinese subsidiary of the German company Blickle. The company is an invisible champion in manufacturing wheels and rollers. In the interview, he explained what is important to be a manager in China.

What is your call for German managers to develop "Chinese capabilities"? Do you have any suggestions?

This is a key issue, not only for small and medium-sized enterprises, but also for every listed large company. When I first arrived in China, I learned this from painful mistakes. Success is achieved through a decisive combination: a profound understanding of the mentality of the Chinese people, Chinese culture, language, and market - coupled with the ability to mediate between Germany and China. The future economic development also requires the management of the German headquarters to have this ability.

How can you avoid misunderstandings?

By spending time with Chinese people - even outside the office. Doing things with family members of business partners and openly discussing topics can help you better understand this culture. It is important for German companies to send foreign nationals to China. Practice has shown that it is necessary to have employees who are familiar with China and Germany. But no one in the world understands everything about China,  as it is too complex and profound.

How do you describe the mentality of Chinese small and medium-sized entrepreneurs?

They have a strong sense of historical mission and believe that "China has been the leader of the global economy for centuries," but later experienced a "century of humiliation.". Now, they hope to return to the top of the world and showcase the capabilities of the enterprise.

You said that German and Chinese cultures are very compatible in many aspects, where do you see it?

China and Germany share a common culture of engineering and innovation in the business sector. This culture has given birth to many new hidden champions in China, especially in small and medium-sized enterprises. Nowadays, they contribute 70% of China's technological innovation. China has demonstrated strong innovation capabilities.

How will Chinese small and medium-sized enterprises develop?

If we continue to view China as a workbench, it will be extremely dangerous for us. Many small and medium-sized enterprises in China are striving for higher value products in the global value chain. Beijing has recognized the importance of small and medium-sized enterprises and consciously promotes their development. The government attaches greater importance to "specialized, refined, unique, and new" enterprises, among which the outstanding are called "little giant" enterprises. At present, the number of "Little Giant" enterprises has exceeded 10000.