VDMA present in China for ten years
"After a long time of growth, exports by German mechanical engineering industry to China decreased over the last two years. In 2013, German companies delivered machines with a value of 131 billion RMB to China. That means China is still the most important sales market despite a 3.7 per cent decrease", stated VDMA-president Dr. Reinhold Festge on a press conference in the context of the ten years anniversary of the VDMA-presence in China. The VDMA opened its Beijing Representative Office in the summer of 2004. Today, the federation locally assists German mechanical engineering companies with twelve employees in Shanghai and Beijing. Currently there are 600 VDMA-member companies being active in China with branch offices or subsidiaries.
Trade with China is no one way street
The bilateral trade had a volume of 70 billion RMB in 2004 - the year of establishment of the VDMA-office - and a volume of 166 billion RMB in 2013.
Chinese mechanical engineers delivered goods with a value of 33 billion RMB to Germany in 2013. "That is, Germany stays the by far the most important Chinese trade partner within the European Union", said Dr. Festge in Beijing. "At the moment, we do not sense any change in the trend of the export business to China", states Dr. Festge. While Chinese deliveries to Germany increased by 14 per cent during the first quarter compared to previous year, German mechanical engineers delivered about three per cent less equipment to China during the same time. "Nevertheless, we expect an accelerating recovery throughout this summer. We are optimistic, that better results in the second half-year will lead to a one-digit export growth in 2014", emphasized the VDMA-president.
China most important investment location
However, the export is just one side of the German mechanical engineers' business in China, since the country climbed up to become the second most important investment location worldwide over the last ten years. From 2004 to 2012, direct investments of German mechanical engineers rose from 5.7 billion RMB up to almost 40 billion RMB. "Hence, China is the second most important location abroad worldwide, just after the USA", emphasized Dr. Festge. "And I am sure that, the number of subsidiaries in China will overtake the one of the still leading USA over the next years."
China offers great chances
"A clear strategy for the middle price segment is necessary to be well positioned in China in the long run", emphasized Mrs. Stephanie Heydolph, Chief Representative of the federation in China. That segment has a large demand of machines, since two thirds of the Chinese population will live in cities over the upcoming 15 years. "The urbanisation with all its technical challenges like recycling, sewage disposal, supply of fresh water, sustenance and transport requires solutions, likewise the gathering of energy out of water and wind power. On all these areas, German mechanical engineers with their technical solutions are well prepared for the upcoming decade", states Mrs. Heydolph.
Source of the image : VDMA