Two Sessions of 2024: China’s Economic OutlookChina’s leadership has set a moderate growth target of „around 5%“ for 2024 amidst a backdrop of considerable economic headwinds, signaling a steadfast resolve to transform the nation’s growth model. This target, announced by Chinese Premier Li Qiang at the Two Sessions meeting, underscores a commitment to stability and high-quality development despite the challenges of a troubled property sector, deflationary pressures, and a volatile global economic climate.Stabilizing Through Transformation and Emphasizing “New Quality Productive Forces” This year’s government work report emphasized the critical need for transformation in China’s economic growth model, focusing on structural …
India’s New EV Import Policy: A Boon for Global Manufacturers?
India’s New EV Import Policy: A Boon for Global Manufacturers?To boost India’s electric vehicle (EV) industry, the government has unveiled a new import policy, having a two-pronged approach: first, to attract investments in premium EV manufacturing. This could bring globally recognized brands and advanced technologies to India. Second, the policy aims to promote localization, encouraging the domestic production of EVs. This focus on local manufacturing protects existing Indian companies that are currently catering to the price-conscious consumer segment with affordable EVs. By creating this framework, the government hopes to foster a sustainable EV ecosystem in India, with options for both …
Challenges within the German Automotive Network
Challenges within the German Automotive NetworkThe German automotive industry, renowned for its precision engineering and collaborative spirit between manufacturers and suppliers, is facing a tumultuous period marked by rising tensions between the major automakers and their suppliers. The strained relationship has led to significant disruptions and financial losses. The situation underscores broader challenges within the industry, including heightened cost pressures, increasing complexity of vehicle components, and shifting market dynamics.At the heart of the issue lies a breakdown in the traditionally close-knit partnership between the major automakers and their suppliers. Instances of faulty or delayed components, ranging from brakes to batteries, …
QUALITY CONTROL ORDERS (QCOs) IN INDIA – ARE YOU GOING TO BE IMPACTED?
QUALITY CONTROL ORDERS (QCOs) IN INDIA – ARE YOU GOING TO BE IMPACTED?India being a leading importer of various products for years has been putting in several efforts to control the quality of products imported in India. The requirement of quality control has originated owing to inadequacy of products meeting the qualification requirements and their failures of meeting safety, reliability, and standard quality norms. Quality Control Orders (QCOs) have been introduced by Indian government for critical products impacting consumer safety and is expected to be expanded to other products soon. These QCOs have an impact on imported products as there …
German FDI Targeting China on New Heights
German FDI Targeting China on New HeightsGermany’s financial engagement with China has soared in recent years, reaching a record of approx. €12 billion in Foreign Direct Investment (FDI) from Germany to China last year, as a recent study form the German Economic Institute shows. This investment trend underscores the complexity of the relationship between the two economies, as German companies seek to capitalize on China’s vast market despite government calls to reduce dependence.Investment in China has raised concerns in Germany and across the European Union. The German government has urged large companies to reduce their reliance on China, citing the …
Quo Vadis? Snapshot of the pharmaceutical industry in Germany
Quo Vadis? Snapshot of the Pharmaceutical Industry in GermanyHigh electricity and gas costs have impeded growth in the German pharmaceutical industry. But now, for the first time in over two years, the gas price went to its level of 2021 as it went below 30 Euros per megawatt hour in March 2024. High electricity and gas prices have been hindering growth in the chemical and pharmaceutical industries as they depend highly on energy for their operations.The adoption of a comprehensive pharmaceutical strategy by the federal government in December 2023 has instilled newfound optimism among industry players, signaling a renewed commitment …
FOM: Potential to transform India’s fertilizer landscape with a biogas byproduct
FOM: Potential to transform India’s fertilizer landscape with a biogas byproductNeed for an eco-friendly alternate to subsidized chemical fertilizers Indian agricultural sector has been extensively reliant on subsidized chemical fertilizers, which are available at more than 90% subsidy rates especially Urea, thus resulting in increased consumption, leading to concern about its negative impact on soil fertility and overall soil health. This concern about soil health however opens a huge opportunity for fermented organic manure (FOM), a sustainable and environmentally friendly alternative produced as a byproduct of biogas plant.India’s move towards increased utilization of Biogas & Organic fertilizer The Indian government …
The Resurrection of Southern Europe
The Resurrection of Southern EuropeIn recent years, Southern Europe has emerged as a beacon of economic resurgence, with countries like Portugal, Greece, and Spain leading the charge. This revitalization stands in contrast to the economic landscape of Northern Europe, with robust growth rates exceeding 5% in 2022, a testament to the region’s resilience and potential. While challenges remain, particularly concerning the sustainability of the growth as well as structural impediments, the trajectory of Southern Europe’s economy offers a promising narrative of growth and transformation.One of the key drivers behind Southern Europe’s economic revival is the composition of its economy, which …
China Outlook for 2024: A Perspective from German Companies
China Outlook for 2024 A Perspective from German CompaniesIn the latest Business Confidence Survey (BCS) conducted by the German Chamber of Commerce in China, findings reveal a complex landscape of opportunities, challenges, and strategic shifts among German businesses operating in China. Conducted between September and October 2023, the survey engaged 566 member companies, offering a comprehensive insight into the German business sentiment within the Chinese market.Despite a slower-than-expected economic recovery with 52% of German companies that have been surveyed stated a decline in their industry, China’s importance to the German economy remains undiminished. As Germany’s most important trading partner for …
Navigating the Skies: An Overview of the Thriving China Aviation Industry
Navigating the Skies: An Overview of the Thriving China Aviation Industry In recent decades, the China aviation industry has soared to new heights, transforming itself into a global powerhouse. Marked by remarkable growth, strategic investments, and technological advancements, China’s aviation sector has become a key player in the global aerospace arena. This overview will delve into the important specifications of the China aviation industry, exploring key factors that have fuelled its rise and examining the industry’s impact on both domestic and international fronts.Aviation Industry Clusters in China: A Symphony of Innovation The aviation industry in China has witnessed significant growth …
Shared Service Center – Rising cost pressure and drive for automation
Shared Service Center – Rising cost pressure and drive for automationShared Service Center established themselves as a valuable growth opportunity for multinational companies by reducing personnel expenses as well as embracing standardization and harmonization within complex global company structures. However, the Covid-19-pandemic, rising costs due to high inflation rates and more advanced automation solutions shuffled the playing field and its environmental conditions. For instance, home office demands have become common practice for Shared Service Center (SSC) in Central and Eastern European (CEE) countries.Poland stands out as the largest player for SSC in CEE commanding a 69% market share, with high …
Charting China’s Course: A Journey Towards Openness
Charting China’s Course: A Journey Towards OpennessIn 2023, China witnessed a commendable growth in its Gross Domestic Product (GDP), achieving a 5.2% expansion for the year. This growth not only aligned with the government’s annual target but also showcased a robust performance, especially in the fourth quarter, where the year-on-year GDP surged to 5.3%, surpassing the 4.9% recorded in the third quarter. Despite these positive indicators, the Chinese government is gearing up to provide additional support to its economy and trade in 2024. In this EAC Executive Briefing, we will delve into the significant developments that unfolded in the latter …