The Association of German Machinery and Plant Manufacturers (VDMA) expects growth opportunities for the export of German machinery despite previous decrease in exports and devaluation of the Chinese currency Renminbi (RMB). Although German exports had declined by 4.9% since the beginning of this year, China would remain the largest sales market for German mechanical engineer.
The chief economist of the VDMA Dr Ralph Wiechers explained to the production magazine that even a devalued Chinese currency would not constitute a revenue threat. Although Chinese exports became less expensive by the devalued RMB, this would not lead to a decreasing demand of German machines because they are settled in different segments. While Chinese machines are still found mainly in the lower price segment, German manufacturers primarily sell high-tech machinery and middle-class machines. In addition, the RMB devaluation would even have a positive result for German mechanical engineer if it would lead to a stronger growth rate in China and by that to a higher demand for German machines.
Between 2008 and 2011, China overtook the US and became the largest machinery market worldwide. According to the VDMA, China’s sale accounts – with 826 billion euros – for 35% of the global machinery market. The US had a turnover of 324 billion euros, followed by Germany with 246 billion euros.