China Becomes The Global Machinery Export Champion

According to the Die Welt on July 7, the latest research of the Verband Deutscher Maschinen- und Anlagenbau (VDMA) pointed out that in 2020, China will surpass Germany for the first time and become the world’s machinery and equipment export champion.

Die Welt: The new export champion-Germany loses its dominance in the field of machinery manufacturing

According to the VDMA report data, the total global machinery trade in 2020 is about 1.05 trillion euros. Due to the epidemic, this total sales volume has decreased by nearly 10% compared with a year ago. Among them, China’s machinery and equipment exports are about 165 billion euros, corresponding to about 15.8% of the global market share. Germany’s machinery and equipment exports are about 162 billion euros, corresponding to a market share of 15.5%.

The report pointed out that this means that in the field of machinery and equipment manufacturing, China’s exports are ahead of Germany for the first time. In contrast, in 2019, German exports are still ahead of China by about 1.4 percentage points.

In addition, the VDMA report also shows that compared with China, the share of other major machinery exporting countries in the global machinery trade is on a downward trend, but the ranking has not changed. For example, the United States continues to rank third with a market share of 9.1%, followed by Japan with less than 8.6%, and Italy with a market share of approximately 6.7%.

Regarding China becoming the “new export champion”, Ulrich Ackermann, head of foreign trade at VDMA, said that this is not surprising. “China has been the world’s largest machinery manufacturer for many years,” Ackerman said. In fact, China’s total sales of 924 billion euros in machinery and equipment last year was almost equal to the sum of the United States, Germany, Japan and Italy. “Therefore, It is only a matter of time before China becomes the leader in foreign machinery trade.”

In addition, VDMA also pointed out that the export of Chinese machinery products no longer only flows to emerging market countries in Africa and Asia. Even in Germany, China is now its largest foreign supplier. Moreover, China has made significant progress in many areas and has become a “strong competitor” of Germany. In addition, Ackerman also stated that China has “discovered the importance of standardization” and is becoming the maker of international standardization.