Germany’s Future Turns East as Exports to China Eclipse U.S.
By Jeff Black - Apr 6, 2011
Germany is bettering its European rivals in the race to harness Chinese growth as exports to the Asian nation begin to outstrip those to the U.S.
With its consumers and companies sating their appetite for power turbines, cars and electronics, China became Germany’s largest non-European customer at the end of last year, helping drive up share prices from BASF SE to Bayerische Motoren Werke AG. Economists expect data tomorrow to show German exports rose the most in five months in February as China’s share of foreign sales continues to grow.
“This is a turning point in Germany’s economic history,” said Andreas Rees, chief Germany economist at UniCredit Markets and Investment in Munich. “China could become the largest export market of all by 2015.”
The U.S. has been Germany’s most important trading partner beyond European borders since the end of World War II, a relationship that helped turn the country into a pillar of economic and political stability for the west. Now, with China becoming the main impulse for world growth, Germany’s exporters of machinery, consumer goods and luxury cars are increasingly turning to the east.
“The theme for this decade is that millions of people in China want to live like Europeans,” said Herbert Perus, head of equities at Raiffeisen Capital Management in Vienna, who helps oversee about $36 billion. “The ‘Made in Germany’ brand is going to be very strong in this market.”
Germany sold goods worth 5.4 billion euros ($7.7 billion) to China including Hong Kong in December, beating the 5.3 billion euros of exports to the U.S.
bloomberg.com
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