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Trade: German companies are moving away from China

2021-11-23T15:16:46.033Z


According to a survey, many German companies are increasingly skeptical about China - and are looking for alternatives to the »workbench of the world«. This may offer special opportunities for countries in Eastern Europe.


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Container ships form the backbone of global trade.

Photo: Marcio Jose Sanchez / dpa

According to the German industry, the material bottlenecks are affecting world trade more and more - and thus also export-oriented companies from Germany.

According to a survey, more than half of them reported problems in supply chains and logistics, the German Chamber of Commerce and Industry (DIHK) said on Tuesday about the study of 3,200 German companies abroad.

This is much more than in the spring.

"Increasing global demand is currently facing insufficient production capacities and transport problems," explained DIHK foreign trade director Volker Treier.

Many companies responded by looking for new suppliers or wanted to relocate production.

This is more difficult for medium-sized companies than for large corporations.

Around 30 percent complain about a lack of goods and services, and every fifth company suffers from its own production losses, for example due to absenteeism.

Reasons for the problems are, for example, the lack of containers and freight capacities on ships as well as production downtimes.

"The supply chain disruptions can also be traced back to serious trade policy distortions, such as regulations stipulating that local production is compulsory," said Treier.

A chance for ... Ukraine?

This applies to China, for example, where German companies are trying to increase the added value of their goods with local products.

This is becoming increasingly difficult for small and medium-sized companies.

Treier also made it clear.

"The country and the market are too big to give up lightly." Medium-sized companies would therefore primarily look for other suppliers - from Asia, but not from China.

Eastern Europe is also benefiting from the trend towards diversifying supply chains or shortening transport routes.

According to Treier, locations like Ukraine and Serbia are becoming more attractive.

This also applies to Turkey, where the collapse of the currency and the issue of legal security are causing problems.

Around 54 percent of companies are planning to adapt supply chains or have already done so.

Almost three quarters of these companies are looking for new or additional suppliers and a third are planning to shorten or change delivery routes.

Around 15 percent plan to relocate their own production.

The situation after Brexit is particularly serious for German companies in Great Britain.

"A total of 77 percent of companies have to adapt their supply chains here."

beb / Reuters

Source: spiegel

All business articles on 2021-11-23

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