German media: "Made in China 2025" has European roots, "Made in China" is also "Made in Germany"

Under the framework of "Made in China 2025," Beijing has used various means to support domestic industrial upgrading. For example, through the Sino-German "Industry 4.0" cooperation reached in 2014, Chinese enterprises have been encouraged to acquire advanced German technologies or even entire companies. The landmark event was the acquisition of the German robotics veteran KUKA by the Chinese enterprise Midea in 2016.

At that time, the academic community represented by the Mercator Institute for China Studies (MERICS) issued a warning, arguing that many German companies, driven by short-term interests, actively transferring technology to China could pose long-term significant risks to the German economy and the European economy. At that time, the China expert Jost Wübbeke, who was still working at MERICS, pointed out during the 2016 Hamburg China-Europe Summit to DW that, except for a few companies like Haier, most Chinese companies were still technologically behind German manufacturing and were still at the "Industry 2.0" stage. He said that the long-term goal of Beijing's "Made in China 2025" strategy is to "replace foreign technologies in the domestic market through targeted policy support, and then compete with foreign technologies in the international market. Its ultimate big goal is to make China an efficient, innovative industrial power capable of independently developing and producing high-end products."

At the same event, SAP's vice president Clas Neumann told DW that in some traditional areas of European manufacturing, China would not be able to surpass Europe in the short term. Many technologies are not something you can learn just by reading about them on paper. To master these processes and technologies, it would take at least two to three decades.

"Made in China" is also "Made in Germany"

However, Camille Boullenois, an expert on China's industrial policy at the Rhodium Group, pointed out that if Chinese tech companies set up factories in Europe and create value within the EU market, both sides could benefit. "Even if these companies have received subsidies from the Chinese government and thus gained cost advantages over European companies, the EU has sufficient tools in its home market to ensure fair competition."

As a leader in the electric vehicle battery market, the Chinese giant CATL established a factory in the small town of Arnstadt in central Germany two years ago. The initial design annual capacity of this factory is 14 GWh, which is equivalent to the production required for 200,000 electric vehicles. The customers of CATL's German factory include European old-established manufacturers such as Audi and Porsche, and the latter's production line is not far from this factory. For CATL, producing directly in Europe can significantly shorten the transportation distance of heavy and flammable batteries and effectively avoid geopolitical risks such as punitive tariffs.

Currently, among the 1,700 employees at CATL's German factory, only about 10% are from China, and the rest are locally employed. This Chinese company also actively cooperates with nearby universities and chambers of commerce to cultivate young talents. The factory also has a training center, which trains about 20 apprentices each year. This training program has been highly praised by the mayor of Arnstadt, Frank Spilling: "I didn't expect them to provide this. When young people have the opportunity to be trained locally, it's the best thing for us. Young people don't need to go elsewhere anymore. A vibrant industry and a market leader settling in our Arnstadt is definitely good news for our city. They have also attracted other suppliers to settle here."

Source: DW

Original: toutiao.com/article/1852892048138308/

Statement: This article represents the views of the author himself.