The machine building industry market Chine: Both the best customer and the new competiton
China has changed the world in the last few years with its economic boom, even in the machine building industry: China has now become the world’s largest market for machines and it is also the world’s largest producer. For the German machine building industry a new competitor has emerged here.
With an economic growth of 7.4 % in 2014 China has missed the target set by the government. The IMF also expects a growth of less than 7 % in 2015 in its latest economic outlook. “After decades of double-digit rates, the growth of China’s economy has normalized in the mid to high single-digit range. It is also noteworthy that the growth rate was stated under the targeted profit of 7.5%”, says Haiying Chen, Vice President at a consultancy called Struktur Management Partner (SMP).
Pollution control in China gives opportunity for the German machine building industry
Growth for the government in Beijing is not the same as growth: Even for the current five year plan till the end of 2015, sustainability is highly in the focus like never before. This trend should become more pronounced in the coming five year plan from 2016 to 2020. China wants to conserve its damaged environmental resources and concentrate more on the domestic economy. “With the rise in income there is a middle class with rapidly increasing purchasing power in China. The Chinese economy is increasingly oriented towards the domestic economy unlike many years back when it heavily targeted export, explains Chen.