Posted: April 20th, 2012 | Author: Franziska | Filed under: China, Economics, International Business
Made in Germany and Managed by China – can this go together?
Usually, when people talk about products made in Germany, words such as, knowledge and quality are utilized. However, when “Made in China” is discussed, products often are associated with providing less quality and being cheap – if not even being copied from another product.
Even though Europe plays only a marginal role in the Chinese trade strategy, the amount of direct investments in Germany is strongly increasing. While the direct investments amounted to 157 million Euros in 2000, it increased to a total of 629 million in 2009. According to the Agency Germany Trade & Invest (GTAI), the US was the most important trading partner for Germany until 2010, when China became number one. Chinese investments increased rapidly and managers were afraid that their company would be bought without a negotiation – just like being on sale. Read the rest of this entry »