RMB Survey 2012

Language: English

Survey Duration: January - March 2011

Surveyed Companies: 30

The Renminbi appreciation has been an ongoing topic in the past. To answer the question “if the imposed political pressure have any significant positive or negative influences on companies operating in China?” conducted EAC- Euro Asia Consulting and the German Chamber of Commerce in China (GCC) a study among 30 German companies doing business in China. The Survey aims to identify the impact of the Renminbi appreciation on business operations in China, especially among German companies, their current operations and future business strategies. Below we summarized the key findings.

Renminbi Appreciation and Its Impact

China’s Renminbi appreciation is seen as a necessity, which will support the growth of the overall Chinese economy as well as the wealth of its middle class. German companies included in the study appreciate the intervention of the Chinese government to ensure a constant and less volatile development and do not see any impact on their business operations if this development continues in a predictable manner. This is caused by the high localization rate of their business activities in China.

Strategic Implications

Being highly localized, many German companies in China have adjusted their China strategies to the local market and do therefore barely see any measures to be taken due to the past, present and future Renminbi appreciation. Due to the growing market in China however, many saw (and still see) the need to not only focus on the high-end market segments anymore, but rather move towards a broader mid-end market.

Future Competitive Environment

Overall, German companies talked to are confident that the Chinese market will further grow and their business thus be expanded. However, they also realize that domestic competition will increase significantly, mainly due to a better access to foreign markets and technologies and improved domestic cost structures. Therefore companies involved in the study agreed that they have to become both, more efficient and innovative in the future to stay competitive. 




N. N

Economic Analyst China

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