From Overseas Press

Germany seizes on big business in China

(chinadaily.com.cn)
Updated: 2010-09-20 13:27

China is helping Germany to get an economic renaissance that is "putting Germans back to work and propelling the economy at a pace not seen since the fall of the Berlin Wall," said an article in the Washington Post on Sep 18.

China is courted as "a revered client" in Germany because the "fast-growing demand from the Asia’s giant is helping to fuel the strong German recovery, and Germany now stands as proof that a rich nation can profit off China’s rise."

China has become the No. 1 overseas market for big-ticket Germany machinery last year. More importantly, "China is driving growth at smaller German manufacturing firms." Many say that "overdependence on China for exports growth could hurt Germany as the economy eventually cools." However, Nobilia’s success in China may show a different picture. The family-run company making modular kitchens forms the true backbone of Europe’s largest economy. It now "has showrooms in 17 Chinese cities and sales surges 40 percent this year alone." "Nobilia now sells more kitchens in China than all but two domestic Chinese manufacturers."

German "exports have jumped 17 percent this year, driven in large part by a 55 percent rise in China of imports." Last year, its "trade volume with China was $115 billion." Like most nations, Germany suffers a trade deficit with China-or the difference between what it sells and what it buys. But during February, "Germany came within a narrow $1 billion of chalking up a trade surplus with China."

That is partly because of frugal German consumers, who "eschew credit and save like mad." It is also because of "domestic manufacturing prowess that allows Germans to buy many products still made in Germany." "At the same time, Germany has created the most finely honed export economy outside of China."