Interview with Deutsche Bank CEO: China remains the growth focus

Abstract

Germany, as an export-oriented country, places even greater emphasis on relations with China amid the rapid development of global technology and increasingly complex geopolitical conditions.

In late June, Christian Sewing, CEO (Chief Executive Officer) of Deutsche Bank, visited Beijing. It had been two years since his last visit to China. During the two-day itinerary, he scheduled more than a dozen meetings in a packed schedule. In an exclusive interview with Caixin, Sewing said that Deutsche Bank’s international business continues to grow, especially in the Asia-Pacific region, where China is one of the most important markets.

“We want to send a clear message: after successfully completing the transformation, Deutsche Bank aims to deepen the layout of its ‘global hosting bank’ strategy, accelerate value creation and sustainable growth, and international business is the top priority in our strategy,” Sewing said.

After being urgently appointed as Deutsche Bank’s CEO in 2018, Sewing carried out a sweeping restructuring of the bank’s operations. He sought a balance between cost cutting and strategic investment, aiming to turn Deutsche Bank into a financial institution focused more on core business, thereby maintaining competitiveness in advantaged markets. Today, Deutsche Bank has four major business pillars: corporate banking, investment banking, private banking, and asset management. Under Sewing’s leadership, Deutsche Bank has pulled itself out of a stretch of consecutive losses, demonstrating strong resilience. Deutsche Bank Group’s performance this quarter was strong: net profit rose 8% to €2.2 billion, setting a quarterly record high.

In recent years, Sewing’s “Global Hausbank” strategy has aimed to strengthen Deutsche Bank’s positioning as a globally trusted long-term partner for corporates. He pointed out that in an increasingly fragmented world with intensifying geopolitical conflicts, customers need a bank that not only has a global network but also possesses strong local expertise—an area where Deutsche Bank has advantages. In this strategy, China is a key growth market.

As CEO of Germany’s largest bank, Sewing’s questions are not limited to Deutsche Bank itself. He hopes to convey signals that the various sectors of German society value long-term relations with China. “The two countries have already established fruitful long-term relations, and we hope these relations can continue to develop and grow,” Sewing said.

Germany, as an export-oriented country, places even greater emphasis on relations with China amid the rapid development of global technology and increasingly complex geopolitical conditions. In February this year, German Chancellor Scholz led a delegation on economic and trade matters to visit China, seeking to further deepen bilateral economic and trade ties. And Deutsche Bank is an important bridge to promote cooperation between China and Germany in economic and trade areas.

“People across Germany fully recognize the importance of China and of China-Germany relations. We truly value the relationship we have built with China,” Sewing said. He praised China’s progress in innovation and technology in recent years and believes this can become a driving force for Germany to keep advancing.

Deutsche Bank China Strategy

Caixin: Deutsche Bank has been in China for more than 150 years. As China continues to expand financial opening and drive the economy toward an innovation-driven transformation, what are Deutsche Bank’s focus areas in the Chinese market? From a banking perspective, what parts of China’s economic transformation are most promising?

Sewing: Deutsche Bank’s roots with China can be traced back 154 years, and we feel very proud of that. I’d especially like to highlight one point: Deutsche Bank’s first overseas branch was set up in Shanghai, China—even earlier than London, Paris, or New York. This clearly shows that from the very beginning of our founding, we have been a highly international bank, and a bank that attaches great importance to Asia and to China. This will not change going forward. At the end of the day, we always follow the development of our clients. German companies like doing business with China; this cooperation relationship has become very mature, and we hope to continue supporting it.

We are not only a long-term partner of China, but also an important participant and witness in China’s capital market opening and the process of RMB internationalization. Deutsche Bank is one of the earliest banks to obtain multiple new business licenses, and one of the banks that has helped make China’s capital markets more open, more international, and more global.

In fact, we were also among the first international institutions to issue RMB bonds in China, actively participating in the issuance of panda bonds. We help international corporate clients issue bonds in RMB within China and attract international investors to participate. In RMB internationalization and capital market opening, Deutsche Bank plays a key role as one of the most active European banks in this process. We hope to continue to maintain and strengthen this leading position.

On the other hand, China has made tremendous progress in technology and innovation. I see everything that is happening here, and to be frank, I think Europeans should better understand China’s technological and innovation capabilities. Deutsche Bank itself is also a company that attaches great importance to technology and innovation. I believe that only by continuously applying technology and driving innovation can a bank succeed. At the same time, we can learn from many innovative practices that China is currently carrying out. There is broad room for complementary industrial cooperation between China and Europe, which is good for us.

Caixin: RMB internationalization has developed rapidly in recent years. How do you evaluate the progress of RMB internationalization? What role can international financial institutions like Deutsche Bank play?

Sewing: The progress of RMB internationalization has been significant. If a country truly wants to integrate into the global economy, it must have an internationalized currency and needs open capital markets. Nearly 20 years ago, China launched the RMB internationalization process, and up to today, whether measured by the number of international investors participating in the Chinese market or by the number of Chinese investors going global, China has made substantial progress.

This is a continuously advancing undertaking. Global banks like Deutsche Bank can play an important role in it. We have globally leading capabilities in fixed-income trading—we are Europe’s No. 1 fixed-income business bank, leading in Asia, and also ranking among the top in the United States. We are more than willing to contribute our capabilities to further promote the use of the RMB worldwide, while also helping products issued by China’s capital markets attract more international investors.

China has already achieved very significant progress. With the application of technology and the improvement of products, I am very happy to see China continue to firmly push ahead with internationalization, whether it is RMB internationalization or the further opening of the capital markets to the outside world. I believe this will continuously increase global capital markets’ and investors’ interest in the Chinese market.

Caixin: What reasons make you confident about the outlook for China’s economy?

Sewing: I think the most important is that China has a clear development plan and adheres to a long-term approach, with a strong focus on innovation and technology, and continues to improve and refine. Looking back at the past three or four decades, China’s development itself is a success story. I’m not an expert on China’s affairs, but as an external observer, what I see is that many of China’s achievements are built on the basis of long-term development goals.

To achieve these goals, China continues to make long-term investments. Even after experiencing some challenges and setbacks, China still sticks to its established development plan and ultimately gets through the difficult period. China has a very clear strategy about which industries it wants to lead in and which technology areas it wants to build advantages in.

At the same time, China has also formulated clear strategies for RMB internationalization and capital market opening, attracting more international investors into China. All of this is built on strategic, long-term development planning. In my view, this is exactly the key reason why China has achieved its current success.

German businesses, especially many German family-owned enterprises, also have a distinct long-term approach and clear long-term development strategies. So I’m not at all surprised why so many German companies have carried out effective cooperation with China. Because in terms of adhering to long-term planning and the commitment to ongoing advancement, the two sides share many similarities.

Caixin: How does Deutsche Bank support German and other multinational companies in doing business in China?

Sewing: This actually is the starting point of our business. If we review the history of Deutsche Bank’s founding, you will find that in 1872, we set up the first overseas branch in Shanghai. Deutsche Bank’s original purpose was to help German companies go abroad.

What do we do specifically for German companies? First, we help German companies with financing, support them in moving from Germany to the global stage, and help drive innovation and the application of technology, ensuring that our clients’ payment and settlement runs smoothly worldwide. Deutsche Bank is the world’s largest euro clearing bank and one of the world’s largest lending banks. A large amount of trade and capital flows every day between German companies and Chinese companies is supported by Deutsche Bank behind the scenes. This is our core business.

Beyond that, risk management has become especially important. We help German companies and multinational corporations manage various types of risks arising from cross-regional operations, including foreign exchange risk, interest rate risk, and supply chain risk, while also helping manage their cash flows. We can do this because we have strong capabilities in investment banking. In addition to supporting day-to-day business activities, Deutsche Bank also plays the role of the client’s risk manager.

We are also heartened that Deutsche Bank has earned a reputation: for many Chinese companies, we are an important gateway for them to enter Europe. In helping clients expand into global markets, Europe is always the top priority, and that is exactly an area where we have unique expertise. In my view, Deutsche Bank has almost become a synonym for China-Germany, and even China-Europe, economic and trade relations.

Caixin: How has the “Global Hausbank” strategy helped Deutsche Bank improve its operations? What role will China play in Deutsche Bank’s next stage of global growth?

Sewing: “Global Hausbank” is a core strategy that we have continued to optimize, improve, and fully implement over the past three or four years. The reason is that we believe that in an increasingly fragmented world with intensifying geopolitical conflicts, what customers truly need is a bank that has both a global network and local professional capabilities—this is where Deutsche Bank’s strengths lie.

In every country where our business covers, we rely on local teams as much as possible rather than deploying large numbers of expatriate employees. This gives us professional knowledge and experience in local markets. Today, we operate in about 60 countries and regions, which makes us one of the few international banks in Europe that truly has a complete global network.

We also have four major business lines—investment banking, corporate banking, private banking, and asset management. Customers are increasingly recognizing this ability to provide comprehensive services. Our corporate clients want to achieve success in China with the help of Deutsche Bank, and more and more Chinese companies are also choosing to expand overseas business through Deutsche Bank, whether in Asia, Europe, or other parts of the world. What we support is the two-way flow of capital and business opportunities.

Given today’s geopolitical challenges, I have noticed that decision-makers want to cooperate with banks from different regions. They work with Asian banks or U.S. banks, but at the same time, they also need a European bank as a partner—and Deutsche Bank is the best choice for that role.

Competition and mutual learning

Caixin: Based on the latest data, China has become the largest source country of foreign investment in Germany, and Germany’s investment in China also hit a new four-year high in 2025. How do these figures reflect the current economic and trade relations between China and Germany?

Sewing: First, this shows that global trade and investment have not ended. That is the most important point. Globalization may be changing, and the way we develop may be different from what we are used to in the past, but global trade and investment are still growing. This is a good thing, because at the end of the day, global trade and investment help all parties develop, and help many regions around the world get out of poverty. I am a firm supporter of global trade and investment, and these data confirm that.

Second, as you mentioned, China’s investment in Germany is increasing continuously, while Germany’s investment in China is also continuing to rise. This indicates that Chinese companies and German companies, as well as European companies and their partners, have already built mutual trust. I have always believed that long-term success is built on reputation and trust. Over the past five years, we have experienced many challenges, including geopolitical conflicts, the COVID-19 pandemic, and various other difficulties. Yet even so, trade is still growing because both sides continue to maintain trust in each other. I think this is a positive signal.

The two countries are also continuously learning from each other—especially in terms of technological development. China has many areas we can draw lessons from. Germany has industrial expertise, advanced production processes, and excellent manufacturing craftsmanship. I still believe that in the fields of industry and manufacturing, Germany still has the potential to maintain a leading position in the world.

If we can bring the application of technologies from China and the United States into German manufacturing, and integrate industrial artificial intelligence (AI) into production processes, this would be a mutually beneficial cooperation. The side that masters advanced technologies can export the technologies to us, and we then use these technologies to optimize production processes. In the future, this will be a cooperation space with great potential.

Caixin: We also see that the EU has been debating economic security in recent years. How do you view Europe’s current stance toward investment in China?

Sewing: This is a very normal discussion. Including Germany, Europe has not achieved satisfactory economic growth for many years. As global industrial competition and economic and trade arrangements continue to evolve, it is a normal exploration for Europe to hold discussions around economic security and industrial competitiveness as it seeks to optimize its development strategy. We do not need to avoid these discussions.

In my view, a more important question is: why can other countries achieve faster technological development and provide high-quality products at lower prices? What can we learn from that? Whenever Europe discusses these issues internally, my advice to our stakeholders has always been: do your own homework first.

First, we need to push through unfinished reforms—to lower energy prices, reduce bureaucracy, and cut corporate production costs. Through reforms, Germany can restore its competitiveness without having to focus attention on other issues. If we really run into certain situations and feel it is necessary to discuss what measures to take to ensure fair competition, then put those issues on the table and discuss them. But the first question is always: what else can we do to become more competitive?

Caixin: Europe is working to enhance competitiveness and attract investment in advanced manufacturing. Deutsche Bank and several German companies have launched the initiative “Made for Germany.” What role can overseas investors—including Chinese companies—play in this initiative?

Sewing: We launched this initiative because we observed that Germany does not pay enough attention to the structural risks that affect its development, and is overly optimistic about its inherent advantages. If you look back with a critical eye at the past, you can see that we took many things for granted—for example, we assumed low-priced energy, low defense spending, long-term low interest rates, and stable external demand would continue for a long time. Then the COVID-19 pandemic broke out, geopolitical conflicts escalated, and inflation followed. Germany realized that many things have changed.

Therefore, after the new German government took office last March, business leaders argued that Germany must rely more on itself. We need to increase investment, improve efficiency, and ensure that Germany can do things better. At the same time, Germany still has many competitive advantages that cannot be ignored. Precisely because of this, we launched the “Made for Germany” initiative. It brings together many German companies, and all parties have committed to deepening their focus on local markets and jointly pushing forward various reform measures, fully improving Germany’s production efficiency and industrial competitiveness.

At the same time, we have also attracted a substantial number of overseas investors. Many international investors have recognized Europe’s important advantages. For example, they value Europe’s long-term stable rule-of-law system, and its mature and sound legal institutions. They also recognize Europe’s stable political environment and democratic systems. They hope to diversify investment on a global scale. Therefore, of the €800 billion committed to Germany over the next two and a half years, a significant portion of the funds will come from international investors around the world, and we are open to this.

The “Made for Germany” initiative is not only a financing commitment. We set up around ten working groups to advise the German government on how Germany should further boost growth and international competitiveness. There are working groups specifically responsible for energy issues, as well as others for capital markets, technology, defense, and more. Many high-quality recommendations are taking shape, and the German government is listening to our views seriously. Through investment of funds and adoption of these recommendations, we hope to help the German economy regain growth.

Caixin: Specifically, what opportunities are there for Chinese companies?

Sewing: Opportunities have always existed. Chinese companies have been investing in Europe and also investing in German companies. At the end of the day, this is a business decision between Chinese companies and German companies—or other European companies. If both sides believe that a cooperation can create more value and deliver better results, then everyone will be willing to seriously consider such a deal. “Made for Germany” is not an initiative that belongs only to Germany, or only to European companies. It is a global initiative that welcomes investment in Germany.

Caixin: Does it involve certain specific industries, such as electric vehicles?

Sewing: Opportunities exist across all industries. At present, about 140 companies are participating in the “Made for Germany” initiative, covering nearly all major industries, including automobile manufacturing and its supply chain companies, as well as technology, pharmaceuticals, health industries, and the chemical industry.

Growth in an Uncertain Era

Caixin: The current global market is facing geopolitical uncertainties such as the situation in the Middle East, and it is also experiencing new changes due to the rapid development of artificial intelligence technologies. How will these affect the global investment landscape?

Sewing: We live in a world of geopolitical volatility where risks are intertwined. At the same time, artificial intelligence is developing rapidly. People seem to be talking less and less about sustainability, but this is also a very important topic. In such a situation, it is necessary to have a bank with deep professional capabilities that can not only provide financing services to clients, but, more importantly, help clients manage risks.

We are seeing a re-emergence of demand for risk management. Whether for corporate clients or private clients, people are paying more attention than ever to how to manage business risks and financial asset risks. Because everyone feels anxious and does not know what will happen tomorrow. They want to manage their assets better, want to diversify the layout of production, and avoid disruptions to the supply chain or other problems.

To achieve this, you need an international bank that has both a global network and local professional capabilities. This is exactly where Deutsche Bank can play to its strengths. Deutsche Bank’s advantage is that we are both a global bank and deeply rooted in local markets. In the current situation, we need to build deep cooperation relationships with clients. Clients trust us, and we must truly understand differences among different regions in order to help them deal with various risks. For Deutsche Bank, this is also an opportunity to expand our business—provided that we continue to maintain our global network strengths while constantly deepening our local market professional capabilities.

Caixin: How do you think the conflict in the Middle East will affect the global economy? We have already seen that the German economy will slow down as a result.

Sewing: Germany’s economic growth slowing is not only due to the Middle East conflict, but also related to Germany’s own reforms not being advanced fast enough. However, it is reassuring that in the past four to six weeks, we have seen the German government clearly speeding up decision-making. Chancellor Scholz is very clear about the challenges Germany is facing and is moving in the right direction.

There is no doubt that the Middle East conflict brings negative effects, because it disrupts energy prices and global investment expectations, creating temporary pressure on the economic recovery of many countries. People will say, “I don’t know what will happen next, so I’ll wait.” If people think the future may become more difficult and are less confident about their jobs, they will not make new consumption or investment.

At present, Germany’s savings rate remains high largely because people are not willing to spend and instead choose to wait and see for things to become clearer. This is not good for the economy. The escalation of the Middle East conflict increases this uncertainty and further drags down the economy. Rising energy prices mean, in terms of trends, that interest rates will correspondingly rise as well, which would also suppress the动力 for economic growth.

However, we should not always overestimate the impact of these events. Looking back at the various predictions made in March and April this year, many people predicted what oil prices would do, what natural gas would do, and even asserted that within three months the world would face an oil shortage. But where are we now? Oil prices are basically back around $70 per barrel. People have found ways to avoid shortages. Of course, we need to take these risks seriously, but sometimes we underestimate how flexibly the economy can adapt to external shocks quickly.

The Middle East conflict has undoubtedly had a negative impact on the economy. But on the other hand, it again proves that the global economy has considerable resilience and adaptability, performing better than we initially expected.

Caixin: How do you look ahead to the global economy this year and next year?

Sewing: I think that this year the United States, China, and India will still maintain relatively strong economic growth. Growth in the United States and China is largely driven by technology. Both countries made the right long-term choices and are benefiting from these deployments. India is still in a stage of rapid development, with huge potential in the future, and India’s population structure is clearly different from China or major European economies.

By contrast, Europe’s economic growth is relatively weak, but I remain optimistic because European regulators have already become aware of the problems of bureaucracy. At the same time, more and more European companies believe that by increasing investment in technology, they can improve efficiency and achieve growth. I believe that with Europe’s deep industrial and manufacturing foundation, by accelerating structural reforms, optimizing regulation and business environment efficiency, and increasing technology investment, Europe’s economic growth potential will be further activated, and the European economy will eventually return to growth. 2026 may still be relatively difficult, but European companies have enough resilience to get through this phase. If Europe’s economic growth rate in 2027 clearly exceeds 1%, I would not be surprised at all.

But there is no doubt that for now the United States and China are still leading in growth rate. The key reason is technological development and its application. This is exactly what Europe currently lacks.

Caixin: Do you think this wave of investment in artificial intelligence is sustainable?

Sewing: Experts in the AI field will provide more professional judgments. But I won’t simply view the current wave of enthusiasm as hype—I believe there is solid funding support behind it.

Those companies making large-scale investments in AI, whether in terms of cash flow, financial soundness, or company scale, are completely different from the internet bubble period 25 years ago. From the perspectives of funding and technology, the foundation for AI development now is also more robust than it was 25 years ago, which is a good thing. In my view, AI is almost a revolution, and overall it benefits the global economy.

Companies around the world need to genuinely adapt to this change and incorporate AI into business operations. This is a question of leadership. If a company’s management actively embraces AI applications and carries out AI cooperation, then that company is most likely to succeed in this wave of transformation.

I remain firmly optimistic about AI. Over the coming months, of course, there will be market volatility, but the foundation and roots of AI are completely different from the internet bubble period. I believe AI will be an important force driving economic growth.

Caixin: AI is also changing the banking industry. How will Deutsche Bank apply AI into its business?

Sewing: The application is very broad. I usually think about AI on three levels. First, we are applying AI to customer service processes, with just one goal: to continuously improve the customer experience. A better experience translates into more market share and revenue. Second, we use AI to reduce tedious manual processes, and the resulting reduction in operating costs will be very significant—possibly even higher than the expectations disclosed to investors in November last year. Third, and this is very important for banks, AI helps enhance risk control capabilities in daily operations. Therefore, whether it is improving customer experience, lowering costs, or strengthening risk control, AI plays a very positive role.

Of course, we also think from another angle. We keep asking: which businesses may be disrupted by AI in the future? What measures should we take? Do we need to increase investment? We have been discussing these issues, which is very interesting analysis. Deutsche Bank has a large loan business. We will also pay attention to how customers may be affected by AI, because AI could change the future development trends of certain industries.