Ningbo Ingenta Mold & Machinery Co.,Limited , https://www.china-ingenta.com
However, mutual investment between China and Germany is not balanced. As of the end of August this year, Germany’s accumulated investment in China has reached 18.03 billion U.S. dollars, while China’s investment in Germany is only 1.73 billion. However, China’s investment has been increasing. Overall, China’s total investment in Germany is only 0.3% of that of other countries in Germany, indicating that Chinese-funded enterprises have great potential for investment in Germany.
According to Luo Baihui, executive vice president and secretary-general of the International Mould and Hardware & Plastics Industry Suppliers Association, Chinese companies have used mergers, acquisitions, and share participation to enter Germany. Currently, there are more than 1,300 Chinese-funded enterprises in the country. Most of the branches and representative offices are concentrated in Hamburg, Frankfurt, Düsseldorf and Cologne. Among them, Shenyang Machine Tool Group, Huawei Technologies, and Sany Heavy Industry Group have achieved remarkable results.
The Heath Company in eastern Germany is a well-known old company and declared bankruptcy due to poor management and funding shortages. Shenyang Machine Tool Group purchased the company in 2004, with a total investment of 20 million euros. The company’s output value reached 45 million euros last year, which is double the average of the previous five years. Huawei has set up its European headquarters and R&D center in Germany. Through continuous innovation and R&D, it has improved the level of German communication technology and the quality of mass communications. After the first phase of the production and R&D project of Sany Heavy Industry Group is put into production, hundreds of jobs can be solved locally.
Luo Baihui said that the German machine tool manufacturing industry occupies an important position in the world, and such brands as Demaghe have a high reputation in China. Many German machine tool manufacturers and Chinese companies have already started in-depth cooperation, in which Chinese companies have also invested in German companies such as Coburg, Heath, Zimmermann, Emmaike, and Warrenberg. The cooperation between China and Germany in the field of machine tool trade cooperation has broad prospects.
Since entering the 21st century, the Chinese machine tool manufacturing industry has entered a stage of sustained high-speed development. From 2001 to 2010, the average annual growth rate of China's metal processing machine tool output reached 29%. In 2010, the total output value of China's machine tools was 20.9 billion U.S. dollars, accounting for 30% of the world's total production value of machine tools; China's machine tool consumption was 28.3 billion U.S. dollars, accounting for 45% of the world's total. Therefore, China has become the world's largest machine tool producer and consumer.
In recent years, the Chinese machine tool market is undergoing profound changes. With the development of the national economy, the level of the machine tool market is rapidly upgrading, and the demand for medium-to-high-end CNC machine tools has increased significantly. China's aerospace, aviation, automotive, marine, power generation equipment, and rail transit vehicle manufacturing require more and more high performance and quality of machine tools. China's machine tool manufacturing industry has not yet been able to meet this change in the market, resulting in the rapid rise in imports of high-end machine tools in recent years.
The upgrade of demand has given impetus to the industrial upgrading of China's machine tool manufacturing industry. China's machine tool companies are transforming the development mode of expanding their scale in the past, improving the product quality and quality-based development methods, and working hard to improve software development and comprehensive service capabilities. In this round of upgrading of the Chinese market and machine tool manufacturing industry, it also brings new opportunities for trade and cooperation to international counterparts. Machine tool companies in various countries have also noticed new changes in the Chinese market and have pushed the newly developed products to the Chinese market.
About one-third of the machine tools consumed in China come from abroad, and Germany is the second largest machine tool importer in China. In 2010, the total import value of China's machine tools was 9.424 billion U.S. dollars, an increase of 59.8% over the previous year. Among them, 1.975 billion U.S. dollars were imported from Germany (Germany's total exports were 6.63 billion U.S. dollars), an increase of 20.6% over the previous year. In the first half of 2011, China's machine tool imports totaled 6.139 billion U.S. dollars, a year-on-year increase of 57.8%. Among them, 1.205 billion U.S. dollars were imported from Germany, an increase of 55.4% year-on-year.
About 10% of China's machine tool output is exported to foreign countries, and Germany is the fifth largest exporter of Chinese machine tools. In 2010, China's machine tool exports totaled 1.853 billion U.S. dollars, an increase of 31.3% over the previous year. Among them, Germany exported 80 million U.S. dollars, an increase of 24.1% over the previous year. In the first half of 2011, the total export value of China's machine tools was US$ 1.090 billion, an increase of 31.3% year-on-year. Among them, Germany exported 0.57 billion U.S. dollars, an increase of 49.5% year-on-year.
Nowadays, China's economy has been highly integrated with the world economy. Almost all well-known machine tool manufacturers in the world have established sales organizations in China, and some have established wholly-owned or joint venture factories. In the context of the global economic and financial crisis, bilateral trade between China and Germany has risen instead of falling. China and Germany are each other's largest trading partners in their respective regions. In 2010, bilateral trade volume reached US$142.4 billion, accounting for one-third of China’s total trade with Europe. In the first nine months of this year, it has reached US$127 billion, and the annual trade volume is expected to exceed last year.