‘China shock’ hangs over German leader Friedrich Merz’s first visit to Beijing
South China Morning Post • • world
Key Points:
- German industrialists have rapidly changed their stance towards China, with the shift described as occurring at "China speed," according to Oliver Richtberg of the Mechanical Engineering Industry Association (VDMA).
- The VDMA represents over 3,000 German manufacturers known as "hidden champions," which produce essential parts and machines for major brands and have been key to Germany's economy.
- China poses an unprecedented challenge to the German machinery industry by exposing its vulnerabilities and intensifying competitive pressures.
- The aggressive competition from China is expected to reduce German machinery industry jobs to below one million for the first time this year.
