German Media: Germany – Export Champion of Industrial Standards (DIN), But Facing Competition from China

The ability to set industrial standards determines a nation’s position in the global market. So far, Germany has held a leading role worldwide in terms of the number of industrial standards exported—though this advantage is currently limited to traditional industrial sectors.

In Germany, it's common for people to complain about cumbersome bureaucratic procedures and excessive regulations hindering economic development. However, every coin has two sides: precisely these detailed rules can simplify economic activities and strengthen and expand market influence.

In Germany, standards are established by the German Institute for Standardization, abbreviated as DIN. Since standards define "how a product should ideally be produced," they also impact production processes, supply chain management, quality requirements, and product design. In other words, whoever participates in setting standards shapes the market.

The International Influence of "German Standards"

When German standards gain international recognition, their impact on the German economy is self-evident—and this happens continuously. Germany holds significant influence within both the European Committee for Standardization and the International Organization for Standardization (ISO).

History is full of examples where industrial standards transformed markets: the container standard was introduced in 1968. Before that, goods were transported in sacks, barrels, or wooden crates. The advent of standardized containers completely revolutionized international trade. These uniform containers could be efficiently stacked and perfectly integrated with specially designed container ships, railway freight cars, and heavy-duty trucks. Global trade thus became faster, more efficient, and significantly cheaper. Christoph Winterhalter, head of the German Institute for Standardization (DIN), stated: "Whoever sets international standards shapes the global market and secures technological leadership."

Industrial standards are not legally binding mandates but voluntary rules followed by businesses. The container serves as the best example: standardization promotes international cooperation, reduces non-tariff trade barriers, and simplifies global supply chains.

Germany – Export Leader in Industrial Standards

An important reason for Germany’s strong influence in standardization lies in the fact that many international standards originally originated from DIN in Germany. Within DIN’s classification committees, representatives from industry play a crucial role. While consumer organizations, NGOs, and other stakeholders also participate, those who typically maintain long-term involvement in standard-setting are usually large enterprises.

After establishing German standards, DIN representatives further engage in the development of European and international standards, thereby influencing their formation. According to Winterhalter of DIN, roughly 30% of European standards and 17% of international standards are currently led by DIN.

Controversies Arising from Standardization

Although standardization has driven the growth of the German economy, the process itself has sparked considerable controversy. Critics argue that large corporations wield excessive influence during standard-setting, while small and medium-sized enterprises (SMEs), environmental groups, consumer protection organizations, and labor unions often play only secondary roles.

A second point of contention concerns whether the standardization process fuels additional bureaucracy. Germany currently maintains around 35,000 industrial standards, each accompanied by extensive documentation and compliance obligations. Patrick Lepape, representing the construction sector, noted that over the past 25 years, standard specifications have become an impenetrable jungle of text even for professionals. As a result, building houses has become increasingly expensive, slower, and stifles architects’ creativity and innovation.

However, Max Flaig from the Federation of Small and Medium Enterprises in Germany argues that standardization can actually reduce bureaucracy. Because all parties operate under unified standards, there’s no need to negotiate numerous individual clauses in contracts separately.

DIN ultimately emphasizes that standards are not static—they must be reviewed every five years. If necessary, they should be revised or even abolished.

Source: DW

Original article: toutiao.com/article/1867996430745867/

Disclaimer: The views expressed in this article are solely those of the author.