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German Automotive Industry in Favour of China Cooperation
5 November 2022
EIRNS—Omitted by most of the German mainstream media, the official statement by the nation’s automotive industry association VDA on the eve of German Chancellor Scholz’s visit today to China, is of constructive relevance: Germany and the People’s Republic of China established diplomatic relations on October 11, 1972. At that time, Federal Foreign Minister Walter Scheel and Chinese Foreign Minister Ji Pengfei signed the joint communiqué on the establishment of diplomatic relations in Beijing. Over the past 50 years, cooperation between the two countries has intensified and developed in many ways. Today, more than 5,000 German companies are based in China, creating a total of around one million local jobs. German automotive manufacturers and suppliers have 350 locations in China. This makes China Germany’s largest foreign location. A good one in three passenger cars from the global production of German group brands is sold in China; in 2021, 270,000 passenger cars were exported from Germany to China. With a volume of almost €30.1 billion, China is the most important destination for automotive products from manufacturers and suppliers in Germany. In no other country worldwide does the German automotive industry produce more passenger cars, 4.3 million units in 2021. Many of the raw materials required by the German automotive industry in its transformation to electromobility come from China. China accounts for over 50% of Germany’s magnesium imports. Rare earths account for 34% of China’s imports and 90% are processed in China. The importance of China as a sales market has grown by leaps and bounds in recent decades. Today, almost one in three passenger cars worldwide is sold in China. In view of a growing middle class, people’s increasing need for mobility and a low density of passenger cars, China still has growth potential today. The German automotive industry has already been able to participate in this development. Today, around one in five new passenger cars in China bears the logo of a German group brand. In absolute figures, this means that German manufacturers will sell around 4.3 million passenger cars in China in 2021. And China is also the most important customer for exports from Germany for suppliers. Trade in motor vehicles and motor vehicle parts is also the largest item in Germany’s goods exports to China. Overall, Germany has a significant trade surplus in trade in automotive goods (€27 billion). This clearly shows the importance of the Chinese market for the German automotive industry. Business with China also secures a large number of jobs here in Germany. However, it is also clear that the People’s Republic is not only a trading partner, but also a nation that vigorously pursues its interests and those of its companies. Serious competitors have emerged in China. China’s importance has increased, both in setting standards and in technology competition. In addition, the German and European economies use raw materials, products and technologies from China that are needed for transformation and that cannot easily be obtained from other sources." As for the EU “values” issue, the VDA notes that it has set high standards in all its enterprises in China that are to the benefit of the Chinese workers employed there. On the Taiwan issue, the VDA stresses the priority of non-confrontational approaches. [rap] |