At the China CNC Machine Tool Show in 2018, a total of 150 German companies (25% more than the previous exhibition) participated in the exhibition from April 9 to 13, demonstrating the strength of their respective companies. Some companies participate in joint pavilions (German Pavilion) and are supported by the Ministry of Economic Affairs and Energy (BMWi) of the German Federal Government; some are self-employed (German Group) or directly registered with the Chinese organisers. Their net exhibition area is approximately 6,000 square meters (an increase of nearly 40%) and is the largest foreign exhibitor team at the show. This shows that the German machine tool manufacturers’ solemn commitment to China – China is their most important export market. These companies believe that their role is not just suppliers, but also partners in the expansion and modernization of China’s industrial system, even when business development is not smooth.
In 2017, Germany’s exports to China increased significantly by 16% to 2.18 billion euros. Since the fourth quarter of 2016, the Chinese economy, especially the industrial system, has undergone a period of recovery and has grown significantly under the impetus of user industries such as communications technology, automobile manufacturing and various specialized equipment. In 2017, the consumption of Chinese machine tools increased by 6%, and imports increased by 14%. In terms of renminbi, its growth is equivalent to 9% and 18% respectively, so this key market is still the most important sales area for German manufacturers.
High-tech machinery is indispensable for the Chinese industrial system that continues to modernize. For more sophisticated machines, about a quarter of 2017 comes from Germany. German manufacturers provide China with a wide range of technology combinations. Among them, the major categories where demand has grown significantly include machining centers, grinding technologies (grinding machines), gear cutting machines and lathes. The business between Germany and China does not come and go. As in the past five years, Germany’s procurement volume in 2017 accounted for 4% to 5% of China’s total machine tool exports, making it the fifth most important exporter. It turns out that parts and accessories, grinding technology (grinding), lathes and drilling machines are very popular in the German market. It is not difficult to find from the orders that the transformation of China’s industrial system has not yet been completed. In 2017, the number of machines ordered by China from Germany rose again and rose by 11% in euro terms. This was calculated on the basis of a 25% increase in 2016. An in-depth study of the demand pattern in 2017 shows that the active status in the first three quarters of 2017 has not been maintained. The fourth quarter caused the above data to eventually drop by 5%. Obviously, after parliamentary and presidential elections, financial financing has decreased, which has curbed cyclical overheating.
