FRANKFURT (dpa-AFX) - According to a survey, many German mechanical engineering companies are currently rethinking their China strategy. In a survey conducted by the industry association VDMA, almost half (45 percent) of the 304 participating member companies stated this. The main reasons for this were a more difficult business situation on the ground, the intensification of geopolitical tensions and the pressure on Chinese companies to give preference to local suppliers and products, the German Engineering Federation (VDMA) announced in Frankfurt on Friday.
"We are observing a significant increase in the competitiveness of local companies due to the increased quality and technology of products, but also increased industrial policy interventions by the state," explained VDMA foreign trade expert Ulrich Ackermann. One starting point could be a diversification of sales markets and supply chains, among other things: "For many companies, this currently means a stronger focus on the US market and - in addition to China - possibly examining additional opportunities in India, for example."
However, according to the survey, 86 percent of VDMA member companies surveyed in Germany and China still have confidence in the Chinese market. According to the survey, 42 percent intend to expand their activities in the country in the near future, while 25 percent are undecided./mar/DP/mis