The mood is bad. The exports of the German machine builders to China to stagnate. Not only the trade of war of the United States increases the cost of their transactions. China also makes life increasingly difficult.
Germany’s machine-builders are demanding more market access in China. Significantly more companies in the industry are critical of the business climate in the country. The chief Executive of the Association of German machine and plant builders (VDMA), Thilo Brodtmann, presented on Wednesday before the press in Beijing a long list of complaints. The trade barriers in China ranged from increasing visa problems and difficulties with the new Cyber-safety act, to market-distorting subsidies.
After a strong growth of 9.6 percent in the previous year, the exports of the German machine builders stagnated to China in the first half of the year practically with a minimum increase of 0.6 percent paint. “European machine builders need the same access to the market, instead of new challenges,” said Brodtmann and referred, inter alia, the introduction of the social system in China for the company.
Social points system as a new challenge
The classification was unclear and the requirements is difficult, said Brodtmann. “There is a lack of transparency for German and European companies.” In addition, the concern that political and social criteria are used to evaluate the companies. The VDMA called for the rule of law. It ought to give resources to be able to controversial entries in clarify.
Brodtmann spoke for an early conclusion of the long-negotiated investment agreement between the EU and China. “But 22 rounds of negotiations have taken place, without important results have been achieved.” Just in the trade war with the United States, China should seize the opportunity with the new European Commission, to come to trading agreements. In contrast to protectionist tendencies elsewhere in Europe and Germany were in favour of free trade.
“Europe and Germany are for free trade”
Through trade, war, German machinery manufacturers, which produced in China, and the United States exported, as well as those in the USA that delivered, according to China, suffered from the VDMA reported-foreign trade Director Ulrich Ackermann. “Mechanical engineering products are now loaded almost all of the additional charges in both directions,” said Ackermann. “It makes the transactions much more difficult.” Nowhere else are there so many German machine builders in the United States and China.
Because of the trade barriers in China the reputation will to a protection of the European market from Chinese investments and louder. “But that’s the last thing we want to see in the current difficult climate,” said Brodtmann. “That’s why China credible steps in the direction of reciprocal market access, companies should be trusted.”
Cross-border traffic more difficult
The new Cyber-security law makes it difficult for cross-border Transfer of data. The requirement to let the costs rise. Also, it is difficult to implement. The industry 4.0, called digital link supply chains in the world was affected. Market access is also hampered by the hurdles in public procurement, although China had committed to at the time of its inclusion in the world trade organization (WTO) in 2001, in the point of the Opening.
The sentiment has deteriorated significantly, as the VDMA said in its autumn survey. The number of companies that were dissatisfied with the business climate in China, rose 17 points to 40 percent compared to the last survey in the spring. In comparison to the prior-year period, there was even a jump of 33 percent points. Of the more than 800 active in China, the German machinery and plant manufacturers, approximately 190 took part this month in the survey.
ul/hb (dpa)