ID :
378898
Tue, 09/01/2015 - 08:41
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Germany Eyes Greener Business Pastures

By Manik Mehta FRANKFURT, Sept 1 (Bernama) -- The recent economic slowdown in China and the renmnbi’s roller-coaster ride have made the German industry and businesses search for greener business pastures in other regions of the world. Germany’s heavily export-oriented economy, lacking raw materials and other resources, has been dependent on foreign markets. China has become a lifeline for the survival of many German companies, particularly the small- and medium-sized enterprises, which had thrived as demand in China surged for high-end products. However, recent developments in China have put German companies in a panic mould, forcing them to take a closer look at the world map to identify potential world markets for their products. German Economics Minister, Sigmar Gabriel, appeared unperturbed by the developments in China despite the unease felt in the industry. He recently told journalists that the developments in China would not impair German trade. Indeed, officials in his ministry emphatically point out that there are other equally interesting markets which could be an option to China. India, the world’s soon-to-be most populous country, is becoming interestingly attractive for the industr. All the big German companies maintain a strong presence in India. A Frankfurt-based entrepreneur said other German companies were also looking at investment opportunities in India. "It’s better to invest and produce inside the market than merely export from Germany, which can in the long run result in products becoming over-expensive," he told Bernama. With China’s slowdown causing consternation in German business circles, German companies are now also taking a much closer look at the ASEAN group whose trade with Germany was positive in the first half of the current year. There is, as one representative of the Frankfurt-based German Machinery and Plant Manufacturers’ Association told Bernama, "considerable excitement" in the German industry over ASEAN’s next level of integration to form the ASEAN Economic Community (AEC) by end 2015. German exports (+8.5 per cent) to and imports (+20.1 per cent) from ASEAN have posted robust growth compared to the first half of 2014. In absolute figures, the total ASEAN exports to Germany in the first six months of 2015 touched €16.84 billion, up 20.1 per cent, while ASEAN’s imports from Germany reached €11.296 billion, up 8.5 per cent growth over the previous year’s first six months. -- BERNAMA

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