German industry wants to expand turnover in the Middle Kingdom – Current ‘Northeast China Location Study’ during Chancellor Angela Merkel’s visit to Shenyang – Chinese sales market

June 9, 2016 | Global News

“The media frequently focuses on China’s declining economic growth. However, figures continue to remain above the average, in a positive zone,” says Tobias Monden, Managing Director Staufen China. A fact of which German industry is most certainly aware. Today, the ratio of companies active in China, whose share of Chinese sales lies between 25% and 50%, amounts to 7%; this value will rise significantly in five years to 18%, and to 28% within ten years.  Further insights: China’s strategic importance for German companies is already very high, and could potentially become even more so. At the current time, approximately half of those surveyed rate the role of China in their global company strategy as important to very important; this number is estimated to increase to two thirds in five years’ time. “The German automotive industry in particular sees China as a key pillar for global company strategies, both today and in the future. A potential which suppliers, and machinery and plant engineering companies, should exploit for themselves,” states Staufen expert Monden. Moreover, the German companies’ reasons for setting up a branch in China have changed greatly. The age of cheap production sites is long gone. Today, the main concern is exploiting the Chinese sales market. One example of those who have gained from this trend are emerging economic regions in Northeast China, such as Liaoning with its capital Shenyang. Indeed, Tier 1 cities such as Peking and Shanghai rank first for the building of sales and service centers; however, flourishing Tier 2 cities such as Shenyang or Dalian have already found themselves in the fast lane. Two thirds of the companies surveyed find these places attractive prospects for setting up a production site. Approximately half see sales and distribution as well as procurement there. And 32% already perceive the emerging Tier 2 cities to be attractive settlement points for research and development. Staufen Managing Director Monden: “The fact that Chancellor Angela Merkel is also coming to Shenyang as part of the German-Chinese government consultations illustrates the growing importance of the Northeast China region.” About the ‘Northeast China Location Study’ Business consultancy Staufen carried out a survey among industry companies for the ‘Northeast China Location Study’. The majority of the companies interviewed are from the machinery and plant engineering sectors, the automotive industry and the electrical industry. 439 executives took part in May 2016. Download the actual study ‘Northeast China Location Study’ (in German) Download the press graphics (in German) Press release (.pdf) Press release (.rtf)

Staufen Back To Top Button