Reference News Network, December 5 report. According to the website of Germany's Wirtschaftswoche on December 2, German companies are facing increasing technological pressure from Chinese competition. The annual business confidence survey released by the China-Germany Chamber of Commerce on December 2 undoubtedly confirms this.
Although the report contains a small piece of good news: the extreme pessimism of last year seems to have temporarily come to an end. Both the companies' expectations for their own industries and their views on the overall economic prospects of China have slightly improved.
But the tone remains cautious. As Martin Hoffmann, chairman of the China-Germany Chamber of Commerce for the North and Northeast regions, said: "All German companies operating in China have had to adapt to a more difficult market environment."
The report points out that China's innovative vitality has played an important role in this. Currently, 51% of the surveyed companies believe that Chinese competitors will take the lead in innovation within their industry, which is a situation that may even be very likely to occur. 9% of companies believe that Chinese competitors are already in a leading position.
Surprisingly: Although German companies expect competition with their Chinese counterparts to intensify, they simultaneously view Chinese companies' efforts to capture global markets as an opportunity.
German companies see a point of convergence here. 36% of the surveyed companies stated that the internationalization of Chinese companies has now become the most important new business opportunity in China. This also explains why German companies have never before placed such great importance on cooperation in China. According to the chamber's survey, more than half of German companies plan to deepen their partnership relationships with Chinese partners.
The report points out that many German companies are seeking to establish partnerships, hoping to achieve faster expansion of their businesses in China. Others hope to better keep up with China's high-speed innovation. Many companies also hope to avoid falling behind technologically through joint research and development.
Additionally, three-quarters of companies say their business in China is greatly affected by the relationship between Berlin, Brussels, and Beijing, so they especially hope that the German government can shape a more balanced and comprehensive image of China domestically.
Notably, the traditional flow of technology between Germany and China has undergone significant changes. For a long time, knowledge transfer was clearly one-way, i.e., from German parent companies to Chinese subsidiaries.
But now, the chamber's survey reveals another picture: although 55% of companies say they are still transferring technical expertise or knowledge to China, 33% of companies reported a clear reverse flow from China to Germany. The traditional "master-apprentice" relationship is gradually changing. (Translated by Jiao Yu)
Original: toutiao.com/article/7580187961208226339/
Statement: This article represents the personal views of the author.