Innovation & IP Asset Consulting
Convergence for divergent trends

GERMANY MUST REACT ON CHINA’S GROWTH

Germany does no longer surpass China in its international economic relations, both as a destination for exports as well as a supplier. Likewise, direct investors have discovered the land for themselves: China lays second place after the U.S. and thus in front of all EU countries.

China is currently in a huge structural change. As actual incomes rise and a high-income middle class is created, followed by an increased focus on consumer goods and services, away from investment and capital goods. Germany must not make the mistake and only put forth on profitable business models and market segments. Reaction is a must because in the future China will be able to offer competitive alternatives, especially in the fields of mechanical engineering and electronics, and discover market segments for themselves, where Germany was the market leader. Especially in fields such as environmental, energy, new materials, food industry, health, education, entertainment and tourism industry, China’s rapid advancements are quickly. As from this result, many services, especially through the Internet and e-commerce, must be developed such as the home and export market, simultaneously with the result that Germany automatically will approach China as a market. It would continue to be a mistake to see China as a rival and thus to follow America. So far, the Chinese industrial investments have been positive and in the future, world trade will no longer be shaped without China.