The tough Chinese controls put German exports in difficulty

The Germans thought China was Bengodi, but now they are starting to think again. Beijing has tightened its entry requirements since the beginning of the year in the crown pandemic making it difficult, if not nearly impossible, for German industrial technicians to get access to the assembly and maintenance of machinery.

The consequences are simple: Chinese customers postpone payments, German machine builders lag behind on orders, and machinery is often not sold as revealed by a VDMA survey of member companies.

For example, Erbatech GmbH, which sells machines for the wet finishing of fabrics, cannot be installed and put into operation at the customer because the staff cannot travel and assemble the systems. Not only are Chinese competitors using the “blockade to take away market share due to the lack of personnel for assistance and assembly.

In principle, a two-week quarantine applies after entering the country. If employees travel to another region, according to the VDMA, there may be another one- or two-week quarantine. This makes scheduling the different activities really difficult. Furthermore, quarantine now often takes place in hotels with small dark rooms, without changing linen and in inadequate hygienic conditions.

“Foreign travelers must receive accommodation in China that meets at least the basic requirements for hygiene standards. Given the large number of excellent hotels on site, this shouldn't be a problem, ”Ackermann asked. The VDMA approached the Chinese ambassador in Berlin about the problem.

There are 1100 German technicians working in China and without their work “Made in Germany” becomes very difficult to sell. Last year, € 18.1 billion worth of machinery was sold, mostly from medium-sized companies. All sales at risk

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This is a machine translation of a post published on Scenari Economici at the URL on Thu, 08 Apr 2021 07:00:25 +0000.