Association survey
VDMA: China's subsidized machine builders are putting the pressure on
Germany's export-oriented mechanical engineering industry is under pressure in many foreign markets. The products of highly subsidized suppliers from China have become better and are almost always cheaper.
The German mechanical engineering industry is facing increasing competitive pressure from China on international markets. "The Chinese mechanical engineering industry is currently experiencing a new wave of 'going global', which is characterized by higher quality and technologically advanced products at a comparatively low price," describes Karl Haeusgen, President of the VDMA industry association. The weakening domestic demand in China is an additional driver for a new wave of internationalization.
As a result, 61% of the participating VDMA companies in an association survey believe that they will only be in an average or poor competitive situation in five years' time. The current figure is 37 percent of companies. The majority of the companies surveyed complain about direct and indirect subsidies that give Chinese competitors an advantage on third markets.
VDMA President Haeusgen points out the importance of China as an export market and investment location for German mechanical engineering companies. They need to promote their own strengths and assert their technological leadership. Anti-dumping and anti-subsidy procedures should be initiated at European level. European policy must protect the internal market from distortions of competition with measures that are in line with the rules of the World Trade Organization (WTO).
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