Machine building industry sees increasing pressure from competition in China
In a survey conducted by the China Research Institute Sinolytics on behalf of the VDMA, 61 percent of the 500 surveyed companies indicated that they expect an average or even poor competitive situation in five years. Currently, this value, according to the Association, is still at 37 percent.
The majority of the surveyed companies complained about indirect and direct subsidies for Chinese enterprises. These gave Chinese companies advantages on international markets, including in Germany. China is, according to the VDMA, the most important machinery supplier to Germany. At the same time, China is still the second most important export market for German machinery and plant engineering, "and will remain so in foreseeable future," emphasized the Association.
Besides the companies themselves forming entrepreneurial alliances to counter China, politics is also called upon to "protect the EU internal market from distortive competition from China." The VDMA urged the EU to conclude free trade agreements with Asian partners and "finally" implement the Mercosur Agreement with countries from South America.
The Machine building industry, specifically in Germany, is under significant competitive pressure from China due to their engineering construction and the subsidies provided to their enterprises. This competitive pressure has led the VDMA to advocate for the EU to negotiate free trade agreements with Asian partners and finalize the Mercosur Agreement with South American countries.
