STORY: Chinese market seen as crucial for German firms, says German economist
SHOOTING TIME: Aug. 27, 2024
DATELINE: Sept. 11, 2024
LENGTH: 00:02:31
LOCATION: BONN, Germany
CATEGORY: ECONOMY

SHOTLIST:
1. SOUNDBITE 1 (English): LI HANLIN, Xinhua correspondent
2. SOUNDBITE 2 (English): HERMANN SIMON, German economist
3. SOUNDBITE 3 (English): LI HANLIN, Xinhua correspondent
4. SOUNDBITE 4 (English): HERMANN SIMON, German economist
5. SOUNDBITE 5 (English): LI HANLIN, Xinhua correspondent
6. SOUNDBITE 6 (English): HERMANN SIMON, German economist

STORYLINE:

SOUNDBITE 1 (English): LI HANLIN, Xinhua correspondent
"German investments in China reached a record 7.3 billion euros in the first half of 2024, according to the Central Bank of Germany. How do you view this phenomenon?"

SOUNDBITE 2 (English): HERMANN SIMON, German economist
"That's a very interesting development, which continues what we have seen last year in 2023. We already had record German investments in China. So, obviously, the relations between Germany and China are actually growing in spite of all the political problems."

SOUNDBITE 3 (English): LI HANLIN, Xinhua correspondent
"In its 2023 'China Strategy,' the German government advised companies to diversify their supply chains and export markets to reduce dependence on China. However, experts argue that market forces, rather than government interventions, are the primary drivers of corporate decisions. The continued rise in German investments in China indicates that the German government's economic policy towards China is losing its effectiveness. How do you think of this idea?"

SOUNDBITE 4 (English): HERMANN SIMON, German economist
"The role and importance of the government for the German economy is always overestimated. Actually, the government is not that important for the German business world, because the business people make their decisions according to their assessment of markets, of growth, etc. And of course, one decision is to diversify. The other aspect is that China is such an important market for the German companies that they keep investing there."

SOUNDBITE 5 (English): LI HANLIN, Xinhua correspondent
"In recent years, many German companies, including several 'hidden champions,' have been acquired by Chinese firms. Do you think China will become the strongest competitor to German "hidden champions?""

SOUNDBITE 6 (English): HERMANN SIMON, German economist
"I think that the Chinese hidden champions will become, some are already the toughest competitors of hidden champions of Germany. And that has certain foundations. For instance, the orientation of the German and the Chinese economy is rather similar. Both are engineering people, not so much consumer marketing experts. The Americans have Coca-Cola, McDonald's, and all these consumer-oriented companies. The Chinese and the Germans have more business-to-business companies based on technology. And that's why they are natural competitors, but also cooperation partners."

Xinhua News Agency correspondents reporting from Bonn, Germany.
(XHTV)