Machinery IndustryExports > Export of machines from Germany to China

Export of machines from Germany to China 2008 - 2015

Exports of the German machinery industry are lagging behind China's weakening growth still more strongly

Up to 2014 China had become the most important export market for machines from Germany outside the EU, having substituted the USA in 2009. How have machinery industry's exports responded to China's slowing growth rates?

China's growth rates of industrial production have been softening since 2012

April 13th, 2016 - China's industrial production was ever more strongly growing from 2008 to 2011, i.e. by 8.6 index points from 2008 to 2009, by 13.6 indexpoints from 2009 to 2010 and by 13.9 index points from 2010 to 2011.


Since the year 2012 growth rates has been slightly softening. While the index had lastly grew by 13.9 points as mentioned, the increase declines up to 2014, i.e. 12.5 index points from 2011 to 2012, 12.2 from 2012 to 2013, 11.5 index points from 2013 to 2014 and 9.4% from 2015 to 2014.

 

So industrial production's growth has been slightly lessening since 2012. However, one should consider that growth rates are related to a ever growing absolute basis.

The exports of the German machinery industry to China and China's industrial production from 2008 to 2015.

With weakening growth rates of industrial production, German machine exports weakening still more strongly

With the dynamically increasing industrial production machine exports from Germany to China steeply stepped up (red line). The export quota nearly doubled from 6.6% (2008) to 11.5% (2011). These increasing machine exports worked as an important ease during the world economic crisis 2008/2009 avoiding even stronger declines of machine production.

 

At this time China substituted the USA as the most important export market outside the EU.

 

2011 the machine exports reached with 11.5% their top level. Then exports were growing clearly slower than the slowing growth rates of industrial production in China would suggest. Because China's industrial production grew in the years 2011 to 2014 from 113.9 to 150.1 while the export shares of machines from Germany declined from its peak 11.5% (2011) to 10.4% (2014).

 

Finally in the first half-year 2015 the US have again become the most important export market for machines from Germany outside EU, replacing China from first rank.


So it is not that much about softening growth in China as it is about the mechanical engineering industry itself why machine exports are using the potential of a growing industrial production to a lesser extent.

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