Chinese machinery manufacturing strength has begun to make Germany nervous

China's machinery manufacturers continue to make progress in the local market, which makes German companies nervous about the competitiveness of German machinery manufacturing, which accounts for 7% of the domestic economy. The German companies found that the Chinese machinery manufacturing industry they faced was a state-dominated industry. To a large extent, it was achieved through acquisitions and cheap labor, and lessons were learned from the Chinese textile industry 20 years ago.

According to Berk, a research group of the German consulting group Struktur Management Part-ner, German machinery manufacturing companies, mainly small family companies, still have the largest market share in the high-end machinery market in China. The size of this market is estimated to be between 75 billion and 85 billion euros. (About $110 billion to $120 billion). Burke and Leit Meyer recently CO-authored a report on the challenges facing Germany in the sale of high-end machinery and equipment to the Chinese automotive, energy, construction, and aviation sectors.

Data from the Chinese government shows that between 2006 and 2009, domestic revenues of Chinese companies manufacturing the above-mentioned machinery and equipment surged by 76% to RMB 123.7 billion (US$19.1 billion). 2009 is the most recent year with relevant data.

According to the statistics of the German government, Germany's high-end machinery and equipment exported to China last year reached 15.13 billion euros (21.79 billion US dollars), an increase of 34% over 2009. Although there is still a big gap between China and Germany, it seems that Chinese companies are gradually catching up.

Analysts said that increased competition is unlikely to affect large companies such as Siemens, but it will impact thousands of small and medium-sized machinery manufacturers in Germany.