präsentation chinas gateway

8/10/2019 Prsentation Chinas Gateway

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CHINAS GATEWAY TO EUROPE

International Trade Case Research


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Introduction

1. 2. 3. 4. 5.

China is the fastest growing economy in the world

China has become largest trading nation in the world forthe 1sttime in history

Total trade in goods: 4.16 trillion

First quarter in 2014: trade slowed down

President Xi Jinping aims for a bilateral trade agreementbetween China and the EU


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Introduction

1. 2. 3. 4. 5..

China imported USD 93.01 billion from the 28 EUMember States and exported USD 174.22 billion duringthe first half of 2013

In Germany the volume of trade with China is ahead ofall other countries of the EU

China views Germany both economically and politicallyas its gateway to Europe

To find reasonable arguments for Germanys position We will compare the 3 strongest European

Economies => Germany, UK, France


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Introduction

General Definitions

Analysis

Discussion

Conclusion

Outline

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General Definition

Gross Domestic Product:

InvestingAnswers, Inc (2014):

GrossDomestic Product (GDP) is the broadest

quantitative measure of a nation's total economic activity.More specifically, GDP represents the monetary value of

all goods and services produced within a nation's

geographic borders over a specified period of time.

1. 2. 3. 4. 5.


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General Definition

Export:

The Farlex Financial Dictionary defines Exports as:

A good produced in one country and sold to a customer. In

another country. Exports bring money into the producingcountry; for that reason, many economists believe that a

nation's proper balance of trade means more exports are

sold than imports bought. Exports may be difficult to sell in

some countries, as the importers may put up variousprotectionist measures such as import quotas and tariffs.

Most governments seek to promote exports, while they

have differing positions on imports.

1. 2. 3. 4. 5.


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Trade relations China - UK

1. 2. 3. 4. 5.

Established in 1950

First western power, gathering trading experience withChina

With 62%, the UK is the biggest oversea market for theChinese currency RMB

7thlargest importer worldwide ; 12thleading in exports

Large trading deficit

Over past 4 years, Chinas exports to the UK havedoubled


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Main products imported from China in 2013:electric equipment: $ 9.2 billionmachines, engines, pumps: $ 8.5 billionclothes: $ 7.3 billionfurniture, lightning and signs: $ 3.7 billion


1. 2. 3. 4. 5.


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Main products exported to China: $ 19.1 billionVehicle industry: $ 7.2 billionmachines, engines, pumps: $ 2.7 billionmedical / technical equipment: $ 1.2 billionelectric equipment: $ 1.0 billion


1. 2. 3. 4. 5.


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Trade relations to France

Established in 1964

France enterprises run businesses 10 years later thanUK and Germany

One reason why they started their business: - majorweapon deal between France and Taiwan

Helping China by developing their nuclear powerprograms

1. 2. 3. 4. 5.


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Trade relations to France

China`s exports to France: USD 26.9 billion

China`s imports from France: USD 23.1 billion

Trading deficit of almost USD 6 billion

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Chinese exports to France

Main products imported from China in 2013:electric equipment: $ 5.2 billionmachines, engines, pumps: $ 4.5 billionclothing $ 4.5 billionfurniture, lightning and signs: $ 1.9 billion

1. 2. 3. 4. 5.


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French exports to China

1. 2. 3. 4. 5.

Main products exported to China in 2013:aircraft and spacecraft sector: $ 5.1 billionmachines, engines, pumps: $ 3.9 billionelectronic equipment: $ 1.9 billionalcoholic beverages: $ 1.6 billion


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Trade Relations China-Germany

In 1972, diplomatic relations China and Germany

The Sino-German diplomatic relations great success story today

German exports to China In 1972 -> USD 270 million In 2013 -> USD 87.81 billion

1. 2. 3. 4. 5.


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China is the 5thbiggest buyer of German products After France, the United States, the United Kingdom

and the Netherlands

German exports from China USD 87.81 billion in 2013

The principal German exports to China: motor vehicles and vehicle parts (29% of exports) machinery (27%)

data-processing equipmentelectrical and optical goods (9%) electrical equipment (9%) chemical products (9%)

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China is the 2nd largest provider of German imports,after the Netherlands.

German imports from China USD 96.12 billion in 2013

The principal German imports from China: data-processing equipment electrical and optical

goods (36% of imports) clothing (11%)

electrical equipment (10%) machinery (8%) metal goods (4%)

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China is Germanys principal trading partner in Asia Bilateral trade USD 183.39 billion in 2013

Win-Win-Situation Chinas transformation offers great opportunities for

German business Big market

Chinese companies need the high-quality machinery

and equipment from Germany to manufacture theirgoods Textiles, electrical goods and toys which are then

exported to Germany

1. 2. 3. 4. 5.


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Discussion

1. 2. 3. 4. 5.

What are possible reasons forGermanys position?

Will Germany remain Chinas

gateway to Europe?


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Discussion

Discussing imports and exports between Germany,United Kingdom France and China

1. Differentiating trade goods between the 28 European

Countries and China

2. Breaking down the trading goods and compare themto the three selected countries

1. 2. 3. 4. 5.


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Discussion

Step 1: EU28 trade in goods with China (per product, inmillion euro)

1. 2. 3. 4. 5.


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Discussion

Step 2: Chinese exports to Germany, the UK and France

1. Electronic equipment2. machines, engines and pumps

are the main trading goods

The Top-10 exported goods arenearly the same in all 3 countries

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Discussion

Germany imports in the 2 sections 1.5 times > United Kingdom 3 times > France

Medical, technical equipment and organic chemicals issignificant higher in Germany Bayer, Boehringer Ingelheim or Ratiopharm,

obtaining almost 80% of their ingredients to produce

medical products from countries like China, Taiwanand India

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Discussion

Vehicles is another sector, which occurs in the Top-10 listof Chinese exports to Germany

Car-Industry, with a revenue of more than USD 500

billion in 2013

By far the biggest industry in Germany BMW, Mercedes and VW are manufacturing

components of their cars in China and re-importthem again to Germany

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Discussion

Chinese imports from Germany, the UK and France

1. 2. 3. 4. 5.


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Discussion

The total volume of machines, engines and pumpsexported to Germany 9 times higher than UK 6 times higher than France

Vehicles imported from Germany to China 3 times higher than UK

Possibly reasons: Rolls Royce from the UK cannot address the mass

market

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Discussion

Imports of German electronic equipment 12 times as high as imports from France and the UK

Possibly reasons:

Siemens, a German producer of electronic equipmenthas a work-force of 43.000 in China

USD 3.5 billion deal with Shanghai Electric PowerGeneration

Developing steam and gas turbines Huge amount of electronic equipment of German

companies is needed

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Conclusion

China is the fastest growing economy in the world

To keep on rising they need: technology

and knowledge

Europe plays a key role in this continuing progress

Germany takes on an outstanding role in thisdevelopment

1. 2. 3. 4. 5.


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Conclusion

Chinas largest economic sectors are: Machines, engines and pumps (in general:

technical equipment) Vehicles

Germany with its longstanding successful, experiencedcompanies and its top qualified engineers and managerscan satisfy Chinese demands

The label Made in Germany is well known in Europe,even worldwide

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Conclusion

It turns out to be a Win-Win-Situation for both countries

In the future, companies will gain more knowledge andneed to be seen as competitors as well as partners and

customers

As long as China requests high-quality technology andknowledge, Germany will remain the gateway to Europe

UK and France cant deliver the same quality level as

Germany

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Conclusion

French chances: The large Space and aircraft economy,in case Chinas market develops in this segment

UK chance is the growing welfare in China, which

triggers a higher demand for luxury cars (Bentley, RollsRoyce..)

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End

Thank you for listening!


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Sources

Andrea Fiano (2014): GDP, URL:https://www.gfmag.com/global-data/glossary/gdp-gni definitions, 01-

10-2014

Bendini, R. (2014): Trade and economic relations with China 2014,

URL:http://www.europarl.europa.eu/RegData/etudes/briefing_note/join/2014/522342/EXPO-

INTA_SP(2014)522342_EN.pdf. 02-10-2014

Farlex Financial Dictionary Export (2012):Export, URL: http://financial-

dictionary.thefreedictionary.com/Export, 01-10-2014

Farlex Financial Dictionary Import (2012):Import, URL: http://financial-

dictionary.thefreedictionary.com/Import+(international+trade), 01.10.2014

German Federal Foreign Office (2014): China, URL:http://www.auswaertiges-

amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01-Nodes/China_node.html. , 01-10-2014

Statista (2014): Umstze der wichtigsten Industriebranchen in Deutschland im Jahr 2013 (inMilliarden Euro), URL: http://de.statista.com/statistik/daten/studie/241480/umfrage/umsaetze-der-

wichtigsten-industriebranchen-in-deutschland/ , 03-10-2014

Schafer I. (2010): Heres how Germany and China became the worlds hottest new trade sweethearts,

URL: http://www.businessinsider.com/germany-and-china-2010-7?op=1 , 02-10-2014


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Sources

Chinadaily.com.cn (2013): China-British relations, URL:

http://www.chinadaily.com.cn/world/cn_eu/2013-11/20/content_17118964.htm , 01-10-2014

Diplomatie.gouv.fr (2013): Economic relations, URL: http://www.diplomatie.gouv.fr/en/country-

files/china-506/france-and-china/economic-relations-5696/ 02-10-2014

EW World Economy Team (2013): UK Exports, Imports and Trade, URL:

http://www.economywatch.com/world_economy/united-kingdom/export-import.html, 01-10-2014

Trading Economies France Export (2014): France Exports to China & Hong Kong, URL:

http://www.tradingeconomics.com/france/exports-to-china-hong-kong, 01-10-2014

Trading Economies France Import (2014): France Imports from China & Hong Kong, URL:

http://www.tradingeconomics.com/france/imports-from-china-hong-kong, 01-10-2014

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http://www.tradingeconomics.com/china/imports-from-united-kingdom, 01-10-2014

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http://www.tradingeconomics.com/china/exports-to-united-kingdom, 01-10-2014


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Sources

Worlds Richest Countries Imports (2013): Top 10 Chinese Imports,

URL:http://www.worldsrichestcountries.com/top_china_imports.html. 02-10-2014

Yao, K.; Rinke, A. (2012): China sees trade with Germany near doubling by 2015,

URL: http://www.reuters.com/article/2012/04/23/us-germany-china-idUSBRE83L08D20120423. , 01-

10-2014

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