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Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

author:桑祈talk

It seems that Germany also has a desperate time, and they actually moved the chemical industry they are good at to China. This is not a small matter, after all, Germany's chemical industry is at the top level, but this move is definitely not a whim. What's going on here? Let's take our time.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

Germany, the country's big brother in the field of chemical industry, has been leading the world in the manufacture of colorants and drugs in the 19th century, and in the 20th century, it has won a reputation in the international market because of its strong research and development capabilities and reliable product quality. But such a leader in the chemical industry has recently made a surprising decision to move part of the chemical industry to China.

Don't look at the German chemical industry cattle, but their domestic resources are not abundant, and many raw materials and energy have to be imported, so the cost is naturally high. In addition, the banner of environmental protection has been waved, and the limits on emissions and energy consumption have skyrocketed the operating costs of German chemical companies. If we want to remain competitive, we need to solve the cost problem.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

On the other hand, China's chemical market has developed rapidly in recent years and has changed dramatically. Not only is it getting heavier and heavier on the global chemical map, but the growth potential is also amazing. China's new chemical materials industry, from upstream raw materials to downstream application markets, a complete chain, the production of a variety of basic to high-end materials, a wide range of applications, huge market space.

The Ministry of Industry and Information Technology also specially issued a "New Material Industry Guide", mentioning new chemical materials, which have excellent performance and special functions, which are not only the future of the chemical industry, but also the secret weapon for improving national competitiveness. Moreover, it is estimated that by 2025, the domestic market size of new chemical materials will exceed 2 trillion yuan, and the self-sufficiency rate will reach 78%. As soon as this data comes out, German chemical companies will inevitably be excited.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

There is a lot of pressure on the German side and a lot of opportunities on the Chinese side, and the two sides hit it off, and there is this decision that seems to go against tradition. But the calculation behind this decision is for the greater good. Germany comes with technical and management advantages, while China offers a huge market and cost advantages, and the cooperation between the two sides has many benefits.

Why has the vigorous development of China's chemical market become a new paradise for German chemical companies? On the German side, facing cost pressures and dealing with environmental regulations, the traditional advantages of the chemical industry are gradually being lost. On the Chinese side, not only the market is large, but the government's strong support for the new material industry has made the future of this industry full of infinite possibilities.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

The cake of new chemical materials is really more and more tempting the more you look at it. From basic raw materials to midstream manufacturing to downstream applications, each link is closely connected and reinforces each other. Engineering plastics, functional polymer materials, electronic and chemical materials, these lofty nouns are behind the innovation and breakthrough in the field of chemical industry. These materials are widely used in high-end fields such as aerospace, new energy, and biomedicine, and the market demand is growing, which promotes the rapid development of the entire industrial chain.

German chemical companies have seen these changes and know that if they can catch this wave of new materials, they can win new life in the global chemical market. The Chinese market offers just that. This is not only because of the demand of the market, but also because the overall layout of China's chemical industry is gradually improving, from policy support to industrial chain coordination, which is providing a strong impetus for the development of new chemical materials.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

So why did German chemical companies choose China as the destination for industrial transfer? First of all, China's relatively low labor costs are a big temptation for German companies. At the same time, China's infrastructure construction and industrial system are becoming more and more perfect, which greatly improves production efficiency and logistics and transportation, and reduces the difficulty of production and sales.

More importantly, the Chinese government's supportive policies for foreign-funded enterprises and high-tech industries. Tax incentives, land use rights, and financial support for scientific research activities have greatly reduced the operating costs and innovation risks of enterprises. This allows German chemical companies to focus more on technology development and market expansion when operating in China.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

But this industrial transfer has not been smooth sailing. There is a lot of opposition to this decision in Germany, fearing that it will lead to the loss of Germany's technological advantage in the chemical field and even affect the domestic job market. On the Chinese side, although there is a great demand for Germany's high-end technology and management experience, it is also worried that this cooperation model may lead to excessive dependence on foreign capital and affect the independent development of domestic industries.

Nevertheless, the German chemical industry decided to take the bold step. They believe that only through such international cooperation can the optimal allocation of resources be achieved, technological innovation can be promoted, and ultimately a win-win situation can be achieved. The huge potential of the Chinese market and favorable policies have indeed given them enough confidence.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

But what is certain is that this is not just a simple transfer of the industry, but also a manifestation of the profound changes that are taking place in the global chemical market map. This choice of German chemical companies may become a reference for more multinational companies when facing the challenges of globalization.

Germany made a decision against its ancestors to move its chemical industry to China, why on earth?

In the context of the German chemical industry, the rapid development of China's chemical market and the mutual attraction of the two countries' policies have provided sufficient impetus and basis for this industrial transfer. In the future, with the deepening of cooperation, we have reason to believe that this will bring new opportunities for technological innovation and industrial upgrading, and will have a positive and far-reaching impact on the economic development of both countries.

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