China’s future strategies – The Expert Forum from the Chamber of Commerce pays Herth+Buss a visit

04. Jul 2018 | People + Business

In June 2018, the Expert Forum for International Markets from the Chamber of Commerce in Offenbach am Main discussed current developments in China with this question in mind.

“What do China’s future strategies mean for Europe?”
The firm Herth+Buss in Heusenstamm provided a venue for the event. Mr Holger Drewing initiated proceedings by stressing the importance of business with Asia:

Every month, we supply 100,000 oil filters and over 50,000 brake discs for Asian vehicle models alone.

Holger Drewing

managing partner, Herth+Buss Fahrzeugteile GmbH & Co.KG

Around 30 per cent of trade between the EU and China is conducted with Germany. For the second time in succession, this makes the “Middle Kingdom” Germany’s most important trading partner, with the overall trade volume at record levels. 

IHK Expertenrat Internationale Märkte Chinas Zukunftsstrategie HerthBuss

Holger Drewing, assembly member of the Chamber of Commerce.

“Embracing technology” – China sets trends for the future

“With its major strategies such as ‘Made in China 2025’ and the ’New Silk Road‘, China is targeting domination of the global technology market in key sectors,”

Henriette Wildnitz

speaker, German branch office of AHK Greater China

China’s particular characteristics include a growing middle class with increasing purchasing power and a high level of urbanisation, which combines with a great acceptance of innovation and a high affinity for technology. Ms Wildnitz explained Chinese purchasing behaviour by referring to their low brand loyalty, their willingness to take recommendations from others, and their permanent online presence. China is already setting the trends of the future today. E-commerce apparently dominates the market, while a digital market presence is also indispensable for German companies in China. In this context, the most significant challenges include a lack of transparency in administration and tendering processes, Internet restrictions, recruitment of personnel and the presence of Chinese competitors. For example, since the Cybersecurity Law came into effect in 2017, companies have been dreading massive restrictions. After all, this law grants China’s state authorities far-ranging control and intervention powers over the Internet.

The Chamber of Commerce ’s Expert Forum for International Markets

International economic policy, such as the free-trade agreement agreed between the EU and Korea, is crucially important for our own business practice. What I like about the Expert Forum is that we decide for ourselves which topics to engage with, which lets us play our part in the Chamber of Commerce’s political efforts.

Jürgen Hagenlocher

Chair of the Expert Forum for International Markets, Managing Director, VIDEOR E. Hartig GmbH,

At the wish of the honorary members of the Expert Forum for International Markets from the Chamber of Commerce, the evening’s programme revolved around current developments in China. Members were able to apply their practical expertise in smaller groups, helping to influence the Chamber of Commerce’s strategic alignment through their participation.
Doing so enabled the trade and external business interests of the respective companies to be more effectively plotted on the political landscape.

The experts in the forum are adamant that German companies should keep their eyes fixed firmly on the opportunities and challenges connected to China’s major strategies. Although the barriers to business with China are not inconsiderable, trade with Asia is experiencing strong growth. Alongside the US, China is the largest importer for the German Federal State of Hesse, with export figures continuing to rise.

We would like to extend our thanks to our host Herth+Buss, who made this interesting evening on China’s future strategies possible. At the next session on 22 October 2018, we will focus on one of our neighbouring countries by discussing the French market.