China's export prowess needs German imports
The Local · 20 Mar 2013, 07:13
Published: 20 Mar 2013 07:13 GMT+01:00
A shortage of precision German machinery would leave Chinese industry in trouble, as most of the equipment used in the sector is German-made and plays a vital role in manufacturing goods it sells around the world, the study by the non-profit Bertelsmann Foundation said.
“German machinery plays a key role in Chinese industry,” said Helmut Hauschild from the Bertelsmann Foundation, which commissioned the study from the Prognos institute.
Reverse the roles, and China is an important provider of textiles and computers to Germany. Textile imports have grown significantly since 1992, when Chinese goods accounted for seven percent. They now make up over 30 percent.
Stronger still are Chinese imports of office equipment, computers and laptops which since 1992 have risen to make up 44 percent of that market.
Yet the study did suggest that China relied on Germany more than vice versa as China tended to export consumer goods – an area in which it did not have the monopoly.
And in order for Germany to maintain its importance to China, it must “invest in research and development to be able to stand up against domestic competition in the long-run,” Hauschild said.