Booming business between Asia and Germany

At the Asia-Pacific Conference two years ago, Juergen Hambrecht, the Chairman of the Asia-Pacific Committee of German Business complained that only ten percent of German exports went to Asia. But the percentage has increased in the meantime:

"The numbers have, of course, changed tremendously during the crisis, but one thing is clear: Asia has remained calm," says Hambrecht. "The exports to Asia have clearly not decreased, compared to the average. Actually, since the last Asia-Pacific Conference, there has been an increase from ten to over 16 percent. "

Juergen Hambrecht is also the Chairman of BASF, the world's largest chemical company, located in Ludwigshafen. In the 1990s he served as the head of BASF's East Asia operations in Hong Kong and has since remained a fan of Asia.

Germany in Asia

The Asian Development Bank predicts Asia's economy will grow 7.5 percent this year. As an exporting nation, the German economy is well positioned in Asia, Juergen Hambrecht believes. German machinery, automobiles and chemical products enjoy a good reputation. But above all, German innovations have great prospects there and promise sustainable growth:

"For example, energy-efficient construction, electric vehicles, lightweight materials for cars, light materials for other devices, for household appliances, simply as a whole: resource-efficient products," he says.

China and India have also recognized that growth at the expense of the environment will not be sustainable and that renewable energy and greater energy efficiency are crucial. With its leading environmental technology, German industry can be an ideal partner for them.

Not optimal conditions

Despite the potential, German business in Asia has not been optimal. Companies complain about protectionism, especially in China, which has intensified since the crisis. Juergen Hambrecht also mentions different industrial standards, especially in China.

Another obstacle is the lack of protection of intellectual property. But Hambrecht dismisses the widespread prejudice:

"The major allegation was that a lot of plagiarism was happening in China which is not at all true," he says. "Intellectual property is an issue worldwide and not just in China. China has learned that intellectual property is valuable and it is quite interesting that most patents are filed today in China."

Gradual change

Despite the progress in this area, China remains a difficult partner politically. Juergen Hambrecht is, however, committed to the policy of "change through trade":

"We would like Vietnam or China tomorrow to look like Germany today. And that is not going to be possible. It was a very long process for us too and every country has to go through this process. If we are able to move forward with our trade or even local production this can be the strongest impetus for change."

Most of the some 4,000 German companies currently active in China would probably agree. Around 2000 companies from Germany have invested in India. Even in other Asian countries, many medium and small-sized German companies are trying their luck.

Author: Danhong Zhang / du

Editor: Thomas Baerthlein