In the face of increasing hostility expressed by US president Donald Trump towards trade with China Germany is hoping to cash in. German businesses have struggled for many years to do trade with China in an equitable manner. They have long complained of an unfair playing field with Chinese business having free access to European markets whilst this is not reciprocated in China. Attempts by Germany and the EU to redress this balance have largely been unsuccessful and there has been a belief that China had little interest in changing the status quo.
German economic experts believe the cooling of trade relations between China and the US being pressed by Trump provides an opportunity to change things. They are predicting a shift in China’s stance faced with a shrinking US market and they believe China will look to Europe to fill the void created by the withdrawl of the US market. They believe China’s willingness and desire to trade will give them the leaverage to strike a better and more equitable deal with China. Large German companies and in particular the automotive industry are rubbing their hands with glee at the prospect.
So what are the prospects for the UK? Brexit does of course free the UK’s hands from being tied to the EU and the government have already been making moves to warm China. The prospects for those UK companies both large and small looking to trade with China therefore look good and we believe we will see significant growth in trade between the two countries over the short to medium term. If your company is looking to trade with China call us to see how we can help.
Germany hopes for a Trump bonanza in China
