At present China is the growth engine for the export of the German, and European, industry of capital goods. For Example, the Peoples Republic of China is the third biggest purchaser of German export goods with an enormous average annual GDP growth rate of nearly 10 % during the last years.
Politically supported, the proportion of incoming foreign investments in China simultaneously rises. Most of the international corporate companies are already present in China with own production facilities. Concerning the real net output ratio they have very precise guidelines to develop the procurement of local content in China. The Chinese industry is widely privatized and is increasingly able to offer advanced supply.
For component suppliers whose customers with Chinese transplants the following strategic question arises:
How to position myself if my costumers increasingly procure goods in China and if their new Chinese supplier are about to attack my position in the domestic or international markets?
If you can’t beat them, join them!
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