Don't build a "fortress in Europe", the Chinese market is hard to be replaced

According to a report on the website of the German Business Daily on December 13, the German Federation of Machinery and Equipment Manufacturers warned against "decoupling" from China.
According to the report, despite various problems, German machinery and equipment manufacturers can stand firm in 2022. At the annual press conference held in Frankfurt on Tuesday, Karl Hoysgen, president of the German Machinery and Equipment Manufacturing Federation, announced: "We are confident that we will achieve the target of 1% growth in real output this year and adhere to our forecast for the coming year."
A year ago, before the outbreak of the Russian Ukrainian conflict, the industry initially set the goal of increasing production by 7% in 2022. However, machinery manufacturing is affected by supply chain disruption and material shortages. Hoysegan said: "High inflation and the Russian Ukrainian conflict and all their consequences will continue to burden our industry for a long time to come. Material shortages and difficulties in the supply chain still exist. In addition, more and more countries are taking protectionist measures again."
According to the latest survey conducted by the German Federation of Machinery and Equipment Manufacturers on more than 600 member companies since early December, 74% of the companies believe that their business activities are seriously or significantly affected by such bottlenecks. Hoysegan said that the Federation predicted that the output would decline by 2% in 2023, but this was far from the setback and crisis in previous years.
It is reported that against the background of the continuing trade tensions between China and Europe, the German Federation of Machinery and Equipment Manufacturers has for the first time determined a comprehensive China position.
The Chinese market cannot be replaced in the short or medium term. Hoysgan said that tools to promote exports to China should not be abolished, and China can still remain in the world economic community. In addition, China has become the most important foreign machinery supplier in Germany with 13.4% share.
The German Federation of Machinery and Equipment Manufacturers recommended that the EU finally implement the agreement with the Southern Common Market and conclude more free trade agreements with Asian partner countries. According to Hoysegan, there should never be a "fortress of Europe" again.