German companies have fled to China one after another, why?

[beijingwalker]

German companies have fled to China one after another, why?​

Nov 21, 2022

At the beginning of November, on the plane of German Chancellor Scholz's visit to China, there were two figures at the helm of car companies that attracted the attention. One is the new head of Volkswagen, Oliver Blume, and the other is Oliver Zipse, Chairman of the BMW Group, who is concerned about transformation.

They have different corporate missions, but they all choose the Chinese market to find a way in the EV era. Herbert Diess, the former CEO of Volkswagen, once said: "Germany has seriously underestimated China's contribution to Germany's prosperity. If there is no business relationship with China, German inflation will further intensify."

Ola Kallenius, the CEO of Daimler, also recently stated that the German economy without China is an "illusion". Yes, one of the main reasons why German companies have increased their investment in China is that the energy crisis has led to severe stagflation within Europe and high manufacturing costs.

They have to look for places where they can transfer manufacturing capital, and China is undoubtedly the best investment destination. In fact, rather than transferring investments, they are "fleeing" to China. So, can choosing China really save the future of German car companies? Why is China the most suitable for the transformation of German car companies? OK, that and more is exactly what we are going to talk about.

 

[beijingwalker]

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