Ger­man op­ti­mism

China Daily (USA) - - FRONT PAGE - By ZHONG­NAN zhong­nan@chi­nadaily.com.cn

Ger­man com­pa­nies in China be­lieve the Made in China 2025 strat­egy will be ben­e­fi­cial to their operations.

Ger­man com­pa­nies in China be­lieve the Made in China 2025 strat­egy will gen­er­ate ben­e­fits for their operations in the coun­try over the next five years, the Ger­man Cham­ber of Com­merce in China said on Tues­day.

More than half of Ger­man com­pa­nies con­sider this strat­egy will cre­ate pos­i­tive ef­fects, even though many of them eval­u­ate their growth in turnover and profit more cau­tiously than be­fore in the 2016 fis­cal year, ac­cord­ing to the Business Con­fi­dence Sur­vey 2016, con­ducted by the cham­ber be­tween Sept 1 and Sept 28.

The Made in China 2025 strat­egy is a 10-year na­tional plan de­signed to trans­form China from a man­u­fac­tur­ing gi­ant into a global high-tech man­u­fac­tur­ing power.

The sur­vey in­ter­viewed 426 com­pa­nies on is­sues re­lated to business out­look, in­vest­ment cli­mate­and­mar­ket con­di­tions.

Lothar Her­rmann, chair­man of the Ger­man Cham­ber of Com­merce - North China, said the over­all out­look for the com­ing year is more pos­i­tive, re­flect­ing the be­lief of Ger­man com­pa­nies in the Chi­nese mar­ket and its re­cov­ery.

“Many Ger­many com­pa­nies, es­pe­cially from the ma­chin­ery, chem­i­cals, au­to­mo­tive and phar­ma­ceu­ti­cal sec­tors, have al­ready shifted their fo­cus to the au­to­ma­tion and dig­i­tal­iza­tion growth ar­eas, as well as form­ing part­ner­ships with lo­cal com­pa­nies to re­tain sta­ble growth,” he said.

The sur­vey said Ger­man com­pa­nies with plants in China were asked about the sta­tus and po­ten­tial of the Ger­man gov­ern­ment’s In­dus­try 4.0 strat­egy for their lo­cal operations in China. Eighty-three per­cent see the suit­abil­ity of im­ple­ment­ing In­dus­try 4.0 within their own­pro­duc­tion pro­cesses as a given.

Four­teen per­cent al­ready point to the in­ten­sive or par­tial use of tech­nolo­gies re­lated to In­dus­try 4.0. One in two com­pa­nies is im­ple­ment­ing or plan­ning for it. The au­to­mo­tive in­dus­try is fur­thest ahead in development to­ward In­dus­try 4.0.

Founded in 1999, the cham­ber has more than 2,500 mem­bers through­out China.

After strong per­for­mance in 2014, com­pa­nies found ris­ing la­bor costs and short­age of qual­i­fied work­ers re­main the main chal­lenges for the ma­jor­ity of Ger­man com­pa­nies in China.

Alexan­dra Voss, the cham­ber’s executive direc­tor for the North China re­gion, said with three years of development, the Belt and Road Ini­tia­tive had proved to be a prac­ti­cal method driv­ing the growth of both Ger­man and Chi­nese com­pa­nies in a broader mar­ket place.

The ini­tia­tive has brought new op­por­tu­ni­ties in overseas projects for Chi­nese com­pa­nies. Chi­nese com­pa­nies signed about 4,000 con­tracts for en­gi­neer­ing, pro­cure­ment and con­struc­tion projects in 60 coun­tries and re­gions along the route of the ini­tia­tive in 2015, while the to­tal con­tract value reached $93 bil­lion, ac­cord­ing to data from the Min­istry of Com­merce.

“The Yangtze River Delta re­gion, Shang­hai, Chongqing and Chengdu with strong con­sump­tion power, de­mand for in­dus­trial up­grad­ing and in­fra­struc­ture, will con­tinue to re­main at­trac­tive toGer­man com­pa­nies from long-term per­spec­tive,” Voss said.

XIN­HUA

Siemens AG dis­plays its lat­est med­i­cal equip­ment at an in­ter­na­tional ex­po­si­tion in Bei­jing.

Lothar Her­rmann, chair­man of Ger­man Cham­ber of Com­merce - North China

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