German Media: Chinese people have too strong learning abilities — we are personally cultivating our most formidable competitor
Handelsblatt (Germany): "The European automotive industry may be inadvertently nurturing its strongest rival"
When German Economy Minister Claudia Roth visited China at the end of May, it became evident how heavily Germany's economy depends on China. What strategy has China used to grow increasingly powerful?
Handelsblatt discovered that Chinese brands are leveraging the struggles of German automakers to expand their influence. An increasing number of Western automakers are opening up their factories to Chinese car companies. Experts warn: Europe’s automotive industry might be unintentionally building its most powerful competitor.
Chinese enterprises such as Dongfeng Motor, Chery Automobile, and Zeekr have already found an alternative path into the European market: producing vehicles in factories previously owned by Western rivals. For example, Stellantis, the parent company of Opel, plans to use four of its plants in Spain, France, and Italy to manufacture models from Zeekr and Dongfeng, in order to improve factory utilization rates. Stellantis CEO Antonio Filosa actively defended this strategy: "The best partnerships create value for both sides and help both achieve success."
For Chinese automakers, producing locally in Europe brings additional advantages: reduced transportation costs; minimized impact of tariffs; easier compliance with EU localization requirements; and greater consumer acceptance of the brand. Therefore, despite the EU continuously tightening trade protection measures, Chinese automakers continue expanding their presence in Europe through joint ventures, contract manufacturing, and factory collaborations.
A recent study released by the Center for European Reform (CER) shows that so-called "China shock" is having a severe impact on German industry. The sectors hit hardest include: automobiles, machinery manufacturing, chemicals, and aviation. Moreover, numerous medium and small-sized German enterprises are also affected. Researchers warn that Germany may face the risk of deindustrialization. China’s global market approach and Sino-European relations will also become one of the key topics at the G7 summit scheduled for mid-June.
Die Welt (Germany) reports: The high cost of Germany’s China policy is now becoming apparent. Concerns about Germany’s excessive economic dependence on China are growing. In response, German Economy Minister Katrin Röhr has offered an unexpected solution: strengthen cooperation and attract more Chinese people to come to Germany.
Source: rfi
Original article: toutiao.com/article/1867571921244160/
Disclaimer: This article reflects the personal views of the author