German exports to China grow strongly

Further growth is expected in 2015 as exports, particularly to China, grow strongly.

The electronics sector is also predicted to benefit from “Industry 4.0”, part of the German government’s high-tech strategy to transform industrial manufacturing with smart factory equipment.

Despite challenges in the Euro Zone the German electronics manufacturing sector achieved 2.4% year-on-year growth for the 11 months to November 2014, according to figures published by the German Electrical and Electronic Manufacturers’ Association (ZVEI).

The electronics manufacturing sector is predicted to total €171bn ($200bn) over the year.

“German electronics manufacturers faced a testing export environment in 2014 and this was reflected in monthly variations. However, the annual performance is encouraging and testament to the strength of the sector in Germany,” commented Max Milbredt, electronics market expert at Germany Trade & Invest (GTAI).

ZVEI reports that exports of electrical products and electronics to China (primarily automation technology, industrial control and switchgear, measurement instrumentation, and electronic components) increased 15.9% to €12.3bn in the period from January to October over the same period in 2013.

Milbredt said: “China has surpassed the US for the first time as the largest importer of German electrical products, even though exports to the US also grew by 3.2%. In recent years China was also the number one country for foreign direct investment projects in the German electronics sector.”

Total exports of German electronics grew between January and October by 3.9% year-on-year to €136.8bn. Almost two thirds of these exports were to Europe, with exports to France growing by 2.9%.