Thirty years ago, the Yangpu Development Zone in Hainan was just beginning its journey—full of promise, yet still in its infancy. At that early stage, Siemens Energy took part in the development of the region, supplying the first gas turbines and maintenance services to the Yangpu power plant. With reliable and advanced gas power technology, we helped lay the foundation for Hainan’s energy infrastructure. This project was not only Siemens Energy’s first heavy-duty gas turbine project in China, but also the country’s largest installation at the time. It marked the beginning of a long-standing partnership with Hainan.

Thirty years on, Hainan has entered a new chapter. On December 18, 2025, the Hainan Free Trade Port officially launched island-wide special customs operations. On the same day, Siemens Energy inaugurated Siemens Energy (Hainan) Co., Ltd. in Danzhou, alongside the groundbreaking of our first gas turbine assembly base and service center in China. This represents the first landmark foreign-invested advanced manufacturing project, following the Free Trade Port’s new phase of opening-up.

Looking back, what stands out most is not only the continuity of individual projects, but also the transformation of our partnership. What began as technology provision has evolved into joint industrial development—an enduring collaboration spanning three decades, shaped by openness and driven by the co-creation of a modern energy ecosystem.

Over the past two years in particular, this partnership has accelerated significantly. We signed a strategic memorandum of understanding with the Hainan provincial government in Berlin; we inaugurated the Siemens Energy Hainan Innovation Center in Yangpu; and we have advanced the construction of our gas turbine assembly base and service center. Most recently, we signed an agreement with China Energy to supply advanced gas turbines for power generation projects in Sanya, supporting the deployment of low-carbon and clean energy solutions in Hainan.

What differentiates this phase from the past is its systemic approach. Rather than focusing on individual projects, we have worked from the outset with a long-term vision: advancing manufacturing, services, innovation and industrial ecosystems in an integrated manner. This shift marks a transition from blueprint planning to capability-building. From early-stage research and alignment to strategic framework agreements and ultimately to resource mobilization and project execution, we have jointly established a full-cycle model for energy ecosystem development.

Christian Bruch
President and CEO, Siemens Energy AG

Our journey in Hainan mirrors the continuous deepening of China’s reform and opening-up. It reflects the transformation of this region from a frontier of openness into a new high ground of opening-up marked by the development of a Free Trade Port with Chinese characteristics.

China and Germany are both global leaders in manufacturing and technology innovation. The foundation of Sino-German economic cooperation has long been rooted in pragmatism, mutual trust and a long-term perspective. History shows that truly sustainable partnerships are not built on short-term opportunities, but on shared ambitions—on the ability to seize opportunities and address the challenges of our time together. As early as the 17th century, the German philosopher Gottfried Wilhelm Leibniz observed that exchanges between Europe and China are not merely about learning from each other’s achievements, but about generating new ideas through mutual inspiration. As he puts it, such encounters would “give birth to countless beneficial results and inventions.” Today, this insight remains highly relevant.

The global energy system is undergoing a profound and historic transformation. Ensuring energy security while advancing clean and environmentally sustainable development, improving efficiency, promoting the low-carbon transition, and strengthening a more resilient modern industrial system has become a shared global imperative. The Hainan Free Trade Port is exploring a path that integrates institutional innovation, industrial upgrading and green transition through a higher level of openness.

At Siemens Energy, we are committed to enabling the energy transition worldwide—across gas power, efficient transmission, industrial decarbonization and offshore wind. In this context, our partnership with Hainan is not coincidental; it is a natural alignment of strategic direction and shared ambition.

For a company like ours, decisions about where to invest and with whom to partner are not purely commercial—they are strategic choices about the future. Hainan represents such a choice, a place with tremendous potential and a promising future. With the continued advancement of the Free Trade Port and the steady strengthening of institutional openness, we are increasingly confident in the region’s long-term potential.

We therefore see our engagement in Hainan as a co-creation facing the future. The new facility we are building is not only designed to serve the local market, but also to support China and global demand. It is more than a manufacturing site—it is a platform integrating technology, services, talent development and industrial collaboration. By leveraging this platform, we aim to strengthen supply chain synergies, enhance delivery and service capabilities and accelerate the integration of advanced manufacturing, green technologies and local talent development—contributing to the growth of Hainan’s modern industrial system.

If, thirty years ago, we were pioneers in bringing energy solutions to Hainan, today we aspire to remain committed partners as China advances a new phase of high-level opening-up. Openness today goes beyond the free flow of goods, capital and information—it enables the exchange of ideas, technologies and human potential across cultures and systems, fostering mutual progress.

For a German company like Siemens Energy, this is both a guiding principle and a strong vote of confidence in China’s future. From early involvement in power technology and project development to the exploration of future-oriented energy systems and industrial ecosystems, the Hainan Free Trade Port has become a strategic platform for advancing Sino-German cooperation and building integrated energy ecosystems.

I very much look forward to visiting Hainan soon to participate in the International Advisory Council of the Hainan Free Trade Port. Together with global partners, we will explore how Hainan can further expand institutional openness, enhance international competitiveness and develop a modern industrial ecosystem in this new phase. Platforms like this are not only forums for dialogue, but catalysts for practical cooperation and long-term consensus.

Today, our gas turbine assembly base and service center in Hainan are progressing at full speed. This project is an important milestone in our footprint in China—and a clear sign of our confidence in both Hainan and the Chinese market. We are convinced that the island’s openness, dynamism and global outlook will unlock even greater potential.

We stand ready to continue working with Hainan and with partners across China’s energy sector—guided by a long-term perspective and strengthened by trusted partnerships—to explore more resilient and sustainable pathways for energy and industrial development. Together, we aim to contribute meaningful progress—not only to the Hainan Free Trade Port and Sino-German cooperation, but also to the global energy transition.