China Transforms from World's Factory to Tech Powerhouse as Dutch Partnership Marks Two Decades
Beijing, Thursday, 11 December 2025.
China now accounts for 29% of global manufacturing value and has evolved into the world’s second-largest economy, surpassing the US when adjusted for purchasing power. The Netherlands Innovation Attaché Network recently celebrated 20 years of fostering collaboration between Dutch and Chinese innovators, witnessing China’s remarkable transformation from manufacturing hub to technology leader.
Two Decades of Innovation Partnership
The Innovation Attaché Network in China celebrated its 20th anniversary in 2025, marking two decades of strengthening innovative collaboration between the Netherlands and China while supporting Dutch entrepreneurs [1]. Economist and diplomat Freek Jan Frerichs, who began his journey nearly 20 years ago as an advisor in science and technology at the Dutch Consulate General in Shanghai, returned to China in 2022 as Innovation Advisor in Beijing [1]. The network has witnessed China’s remarkable evolution from manufacturing powerhouse to a global technology leader, with the country now representing one of the most important science nations over the past two decades [1].
Recent Diplomatic Breakthroughs in Innovation Collaboration
The partnership reached a significant milestone on December 9, 2025, when a high-level Dutch delegation led by Erwin Nijsse from the Ministry of Economic Affairs and Ingrid Thijssen from VNO-NCW visited China for the bi-annual Joint Committee Meeting in Beijing [2]. This meeting marked the second high-level gathering since the signing of the 2023 Memorandum of Understanding between the Dutch Ministry of Education, Culture and Science, the Ministry of Economic Affairs, and China’s Ministry of Science and Technology [2]. During this meeting, both sides agreed to launch joint funding activities and signed two cooperation program agreements for joint research and development projects focusing on next-generation battery technologies and green chemistry [2].
China’s Technological Infrastructure and Market Dynamics
China’s transformation is evident in its modern infrastructure, which includes high-speed trains traveling at 350 kilometers per hour, drones for deliveries, facial recognition systems at airports, electric vehicles, and autonomous taxis [1]. As one observer noted about China’s approach to innovation implementation: “We’re still talking about it, they’re already doing it” [1]. This technological advancement has positioned China as a primary market for new innovations, even those developed elsewhere, due to Chinese consumers’ openness to adopting new technologies [1]. However, recent concerns have emerged about the lack of a level playing field for international entrepreneurs operating in China as of December 10, 2025 [1].
Strategic Opportunities and Risk Management
For Dutch entrepreneurs, significant opportunities exist in China’s sustainability sectors, including the green transition, renewable energy, and circular economy initiatives, as well as in digital transformation areas such as artificial intelligence, Industry 4.0, and digitalization [1]. The Innovation Attaché Network specifically focuses on innovative chemistry and energy materials, particularly battery technology and hydrogen, while exploring Dutch interests in photonics, intelligent systems including drones and robots, and biotechnology [1]. However, Freek Jan Frerichs advises entrepreneurs to “conduct thorough research on whether China is truly the right market for you and delve into the risks and challenges” [1]. Protecting valuable knowledge and intellectual property has become increasingly important for international entrepreneurs in China, with cybersecurity and precautions for business trips now essential considerations [1]. The China IP SME Helpdesk offers support from the European Union for protecting intellectual property rights [1].