German companies under pressure to adapt as China challenges them at their own game

2:10 AM ETDeveloping

Politics Desk

In Short: German companies must cut costs to compete with Chinese firms, who are expanding their market share and increasing exports, according to industry experts.

German companies are facing significant challenges as they adapt to increased competitive pressure from Chinese firms. According to Volkswagen’s finance chief, Arno Antlitz, the need to reduce costs is critical, especially given the 20% decline in China’s total market and the growing export activities of Chinese competitors in Europe.

Economists Brad Setser and Sander Tordoir warn that China has already established a strong presence in German industry and is poised to further expand its influence, likening the situation to China having 'eaten much of German industry's lunch and is preparing to start on dinner.

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Costs must come down “in an environment where the Chinese total market is down by 20%, and Chinese competitors are increasing exports and thereby competitive pressure in Europe,” said Volkswagen’s finance chief, Arno…
“China has already eaten much of German industry’s lunch and is preparing to start on dinner,” wrote economists Brad Setser and Sander Tordoir.

Sources

The Independentlink