Climbing value chain

China's desire to climb up the value chain and become a source of high-end manufacturing also requires faster improvement of its labor force, German entrepreneurs said.

Christian Blatt, general manager of Krones Machinery who also serves on the board of the German Chamber of Commerce, said the GCC conducted an annual survey on Germany companies in China, asking what concerns them most. For many years, energy and supply shortages and intellectual property rights topped the list.

"However, in last year for the first time, human resources entered the top-concerns list," Blatt said.

Erik Breslein, general manager of Zollner Electronics, which produces electronic products for high-speed trains and automobiles, said a better education system is his top concern for his company's operations in China.

"For the past decade we have grown 6 to 7 percent annually. But as China is growing more and more in the direction of high tech, you really need high-quality people to handle the high-tech machineries," Breslein said, adding that his company is establishing a training program for workers.