Site icon YCNews

German media: China’s economy provides an important driving force for the world recovery process

German media: China’s economy provides an important driving force for the world recovery process

how china economy recovered from corona The positive data for the third quarter released by the National Bureau of Statistics of China recently received great attention from overseas media. German public opinion generally believes that China’s economic upturn will play a positive role in the recovery of the world economy.

China Support world economy

The German “Business Daily” published an article titled “China Supports the World Economy” on its webpage on the evening of the 19th local time. 

The report pointed out that China’s GDP, after a record year-on-year decline of 6.8% in the first quarter of this year, reversed in the second quarter and increased by 3.2%, becoming the first major world economy to achieve growth since the outbreak of the Covid-19.

The 4.9% growth rate continued to maintain this steady recovery. 

The article stated that China’s economic growth has revived the export hopes of German companies frustrated by the Covid-19 crisis. Various industries including automobiles, machinery manufacturing, and logistics have reported good news for growth.

Specifically, before the outbreak of the Coronavirus, China was the most important sales market for German automakers. At the moment, the auto industry, which has been hit hard by the epidemic, sees it as a life-saving straw. 

The article uses Daimler AG as an example, saying that the company reported last week the profit growth of its core brand Mercedes-Benz. 

how china economy recovered from corona

how china economy recovered from corona Preliminary data shows that thanks to the rapid recovery of China’s business, Mercedes-Benz’s operating income in the third quarter reached 3.1 billion euros, an increase of nearly 15% compared to the same period last year. 

The Chinese market contributed nearly 40% of Mercedes-Benz’s passenger car sales in the current quarter, reaching approximately 224,000. 

Previously, due to the implementation of the epidemic lockdown, Mercedes-Benz’s sales in China in the first quarter fell by 20% year-on-year. Today, sales in the first three quarters of this year have increased by 8.3% year-on-year.

Nicholas Peter, the chief financial officer of the BMW Group, also believes that “Asia is the locomotive of global car sales.” Because the company’s sales in China in the third quarter were also very gratifying, an increase of 30% compared with the same period last year. 

The CEO of Volkswagen China Feng Sihan also revealed that the group’s Audi brand achieved its best performance since entering the Chinese market 32 ​​years ago in the third quarter of this year.

Similar positive feedback also comes from large German logistics and machinery manufacturing companies. Industry giants including Deutsche Post, engine manufacturer Deutz, shipping company Hapag-Lloyd etc.

have all stated that their Asian business is recovering and have raised their profit forecasts for the entire year. Businesses in Asian countries such as Siemens and China have once again shown a good momentum of development.

Regarding whether the Chinese economy can once again become the growth engine of the global economy like the financial crisis 10 years ago, the article quoted the head of the German Institute of Economics, Freizzer, saying that the large-scale stimulus measures adopted by the Chinese government are working.

China economic recovery

China economic recovery is stronger than most countries in the world. Given that China has successfully contained the epidemic and quickly restarted its economy, Germany is expected to benefit from the recovery of world trade, mainly driven by Asia. 

Felbermeier, director of the Institute of World Economics in Kiel, Germany, also believes that China is the main support for Germany’s current economic development, and this momentum will continue to promote the steady progress of Germany’s recovery in the coming months.

German “Der Spiegel” published a report on the 20th that China’s positive economic data is undoubtedly good news for Germany. 

The article cited the opinions of experts on China issues and pointed out that China has

gradually emerged from the epidemic crisis, and a series of government measures have effectively

avoided economic losses, especially the negative impact on the middle class. 

This can be seen in the renewed enthusiasm for consumption of the Chinese people:

the total retail sales have once again achieved positive growth, and the total private

consumption in September this year even increased by 3.3% year-on-year. 

With the support of policies such as tax cuts and fee reductions, emergency relief loans, and

shopping allowances, the pressure on small, medium and micro enterprises and individuals has been significantly eased. 

During the first National Day Golden Week, China’s consumer market has clearly recovered. Tourism, catering and shopping, culture and entertainment have all shown a prosperous situation almost the same as before the epidemic.

Screenshot of German “Der Spiegel” report

importance of the Chinese market is self-evident

The report said that for the export-oriented German economy, the importance of the Chinese market is self-evident. During the epidemic, China became Germany’s second largest export destination country. 

From January to August this year, Germany exported goods worth about 60.3 billion euros to China. The article also likened China to the savior of the German auto industry.

Saying that in the second quarter, when most of the western industrial countries’

economic and social activities

53% of Volkswagen’s

global sales were

how china economy recovered from corona

attributed to the Chinese market. 

The proportions of Daimler and BMW are 45% and 44%, respectively.

In an interview with Der Spiegel, German auto industry expert Dudenhof said that

China is dragging the world auto economy out of the bottom like the financial crisis in 2008 and 2009:

“If the auto industry still has a growth engine, That must be China.”

He analyzed and pointed out that in response to the sudden decline in car sales at the beginning of

The epidemic, the Chinese government promptly adopted measures such as issuing new car purchase

allowances and relaxing restrictions on license plate registration, which effectively promoted the recovery of the car market.

Exit mobile version