Germany china economic relationship between countries

China–Germany relations - Wikipedia

germany china economic relationship between countries

The German economy has grown dependent on China in a The relationship between the two countries has changed in the interim and is no. With an increasing amount of partnerships, China-Germany business and economic ties are poised to grow stronger. The two countries moved to a full strategic partnership in , and have since benefited from. Trade the two countries has doubling almost every five years, as part of a comprehensive strategic partnership.

Germany, on its part, is known for its scientific and technological innovation, advanced manufacturing industries, vocational education, and small and medium-sized enterprises. At the same time, only one-third of all German companies in China are confident that their investments in this project will have a positive impact on their business.

Most German investment in the BRI is in the automotive and construction sectors, making up almost 40 percent of total investments. The remaining is in sectors such as logistics, energy, business and finance, and transportation. According to the German Chamber of Commerce, 46 percent of the German companies participating in the BRI do so as subcontractors or suppliers to Chinese companies.

The region is known for its ready access to the Yangtze River Delta region, and its large population.

germany china economic relationship between countries

Since AugustTaicang has attracted more than small and medium-sized German companies, generating sales revenue of RMB The German Center Taicang, a base of Sino-German cooperation, with its proximity to the resources of Shanghai and Suzhou, prepares businesses operating in the automotive, machine construction, electronics, energy, and consumer products sectors to enter the Chinese consumer market.

According to the aforementioned Business Confidence Survey, German companies are planning further investment in Jiangsu, Guangdong, Sichuan, and Chongqing.

Tier 1 cities like Shanghai, Beijing, Guangzhou, and Shenzhen also remain popular locations for German investment because of their large populations exhibiting mature consumer behavior. German investors also feel threatened by Chinese incursions into their intellectual property rights. Four years ago, Chinese President Xi Jinping visited the inland port. The engine of a train that arrived from China that day was decorated with red paper dragons for the occasion and Erich Staake, CEO of the Duisburg port, was also on hand.

Staake, who, like the Chinese president, was born insees the rail connection as a boon both for the port and for the entire region, which badly needs it. There is, though, another way of seeing it: Namely that the multibillion-dollar project provides the Chinese with a kind of bridgehead in Europe from which they are pushing their expansion across the Continent and broadening their economic influence. So which is it? An opportunity or a threat?

It isn't easy to find an answer to that question -- and that itself is telling. Chancellor Angela Merkel's visit to China this week will have a different flavor to it than her previous 10 visits to the country. The relationship between the two countries has changed in the interim and is no longer as balanced as it once was.

Until recently, the relationship had seemed almost symbiotic and the roles were clear: Germany sold high-end machinery and vehicles in China, including more than 5 million automobiles in alone.

In return, China exported furniture, refrigerators and electronic devices to Germany at unbeatably low prices.

germany china economic relationship between countries

But now, China has reached adulthood much more quickly than expected. Not all that long ago, China was a developing economy, seen by industrialized countries in the West as a gigantic market where they could sell their goods. Then, it became the world's factory, a place with inexhaustible resources. Now, however, it has matured into a powerful competitor capable of leaving Germany in its dust.

Chinese companies are developing intelligent machinery and production facilities; they are building cars, many of them with electric motors; and they're making inroads into sectors that used to be Germany's private domain. China has figured out how to copy Germany's successful model and is now becoming a danger to the original.

The old logic which held that "China needs us" is no longer true.

germany china economic relationship between countries

In fact, he says, the situation has flipped: Germany is increasingly reliant on China as the country increasingly becomes a driver of global innovation. They used to target second-tier firms, but in recent years, the focus has increasingly shifted to key industrial players.

germany china economic relationship between countries

Recently, Chinese buyers have even shown an appetite for companies listed on the DAX, Germany's blue-chip stock index. In February, billionaire Li Shufu quietly acquired a 10 percent stake in Daimler. Dieter Zetsche, the company's chairman of the board, believes that an additional large Chinese investor may also acquire a stake in the company: Politicians and executives are beginning to wonder what large company might be targeted by Chinese investors next.

China remains Germany's biggest trading partner in | Reuters

I understand that I may repeal my consent at any time. And it's not just coming from the Far East.

germany china economic relationship between countries

Reliant as it is on exports, the German economy is sensitive to shifting trends in global trade and Merkel's visit to China this week is coming right in the middle of a period of transition. China is growing stronger, America has become unreliable and Germany has to figure out what its new role will look like.

China remains Germany's biggest trading partner in 2017

Bach never visited China in his lifetime, his statue now welcomes visitors entering Shanghai from the city's main railway station In The Chinese Room of the Royal Palace, Berlin, considerable effort was invested in creating Chinese decorations and furnishings 19th Century depiction by Eduard Gaertner. Unlike Portugal or the NetherlandsGerman states were not involved, on the state level, in the early th centuries contacts between Europe and China.

Nonetheless, a number of individual Germans reached China at that time, in particular as Jesuit missionaries. Some of them played a significant role in China's history, as did Johann Adam Schall von Bell in China inwho was in Beijing when it was taken by the Manchus inand soon became a trusted counselor of the early Qing leaders. Meanwhile, in Rome another German Jesuit, Athanasius Kircherwho never got to go to China himself, used reports of other Jesuits in China to compile China Illustrata, a work that was instrumental in popularizing knowledge about China among the 17th-century European readers.

The earliest Sino-German trading occurred overland through Siberiaand was subject to transit taxes by the Russian government. In order to make trading more profitable, German traders took the sea route and the first German merchant ships arrived in Chinathen under the Qing Dynastyas part of the Royal Prussian Asian Trading Company of Emdenin the s. On 2 SeptemberFriedrich Albrecht zu Eulenburg and a representative from the Zongli Yamen signed the Treaty of Tianjinwhich opened formal commercial relations between China and Prussiawhich represented the German Customs Union.

Prussia would later on become the dominant and leading part of the newly founded German empire. During the late 19th century, Sino-foreign trade was dominated by the British Empireand Otto von Bismarck was eager to establish German footholds in China to balance the British dominance.