To further promote trade and investment, the city government of Zhanjiang opened a trade office in Karlsruhe, Germany on June 30 .

Located at the German Chamber of Industry and Commerce Greater China office, it offers a "window through which we will be able to see what German businesses need, what they want to know and what they are interested in for better cooperation", said Mayor Wang Zhongbing at the opening ceremony in Karlsruhe.

"Starting today, businesses in Zhanjiang and Germany will become closer," he added.

The government hopes to attract more German companies including small and medium-sized enterprises.

With steel, machinery, petrochemicals, papermaking, home appliances and aquaculture fueling its economy, Zhanjiang shares a similar economic mix with Germany, Wang said.

Industries, urbanization and consumers in Zhanjiang are creating a lot of opportunities for foreign investment, he said.

With extensive links to German businesses, especially SMEs, the German chamber known as AHK facilitates connections in Zhanjiang, said Sabine Dietlmeier, general manager of AHK Greater China.

AHK serves over 3.6 million companies at home and more than 3,000 of the 5,000-plus German companies in China, where it has five offices.

As costs increase in large Chinese cities, German companies are looking at smaller cities and for investment opportunities, Dietlmeier said.

An agreeable living environment is important in German businesses, which value the quality of life and environmental protection, she added.

More and more German companies intend to invest in China and vice versa, said Sonja Mller, director of East Asia international business at the Chamber of Commerce and Industry in Frankfurt am Main, which has more than 100,000 corporate members.

Her organization will cooperate with other business organizations to address the needs of German companies in Zhanjiang, she said

With large German companies already operating in China, most of those now seeking help from AHK are SMEs she said.

Facing greater risk in investing abroad than large players, SMEs have higher demand for immediately available services, Mller said, adding that sufficient information and connections will help them make decisions.

Trade offices in Germany like the one by the Zhanjiang government will play a valuable role, she said.

At the opening ceremony, Mayor Wang also pledged higher efficiency in serving the corporate sector.