{"id":49597,"date":"2019-11-14T06:20:47","date_gmt":"2019-11-14T11:20:47","guid":{"rendered":"https:\/\/olduvai.ca\/?p=49597"},"modified":"2019-11-14T06:20:52","modified_gmt":"2019-11-14T11:20:52","slug":"global-supply-chains-imploding-as-quarter-of-german-firms-plan-to-leave-china","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=49597","title":{"rendered":"Global Supply Chains Imploding As Quarter Of German Firms Plan To Leave China"},"content":{"rendered":"\n

Global Supply Chains Imploding As Quarter Of German Firms Plan To Leave China\u00a0<\/a><\/h3>\n\n\n\n

The Bussiness Confidence Survey 2019\/20<\/em> published<\/a> by the German Chamber of Commerce in China, in cooperation with KPMG in Germany, finds that almost a quarter of German companies operating in China are preparing to relocate production facilities. <\/p>\n\n\n\n

The survey was conducted from late July through mid-September and had 526 member companies out of 2300 respond. Out of the 526 member companies, 23% of the respondents said their factories will be transferred out of China or are contemplating the move.<\/p>\n\n\n\n

Among the German companies leaving or actively planning to leave China, about 71% blame increasing labor costs; 33% cited unfavorable policy environment; 25% said the US-China trade war, and 22% said market access barriers. <\/p>\n\n\n\n

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Of the respondents who’ve resorted to relocation, 52% have chosen Southeast Asia, 25% India, 19% Central\/Eastern Europe, and 17% Western Europe. Only 5% of respondents said they were going to move operations to the US, contrary to President Trump’s claim that companies exiting China will be rushing to the US. <\/p>\n\n\n\n

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<\/a>Respondents said the US-China trade war had created a toxic and “gloomy” business outlook that has contributed to the global synchronized slowdown. <\/p>\n\n\n\n

About 83% of German companies said the trade war has directly or indirectly affected their operations. “Business expectations have dropped to their lowest level in years with only 27% of surveyed German companies expecting to reach or exceed their business targets in 2019,” the survey warned.<\/p>\n\n\n\n

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<\/a>Jens Hildebrandt, Executive Director of the German Chamber of Commerce in China, said: “2020 is likely to be characterized by uncertainty, stemming from an unresolved US-China trade dispute related with a decelerating Chinese and global economy.”<\/p>\n\n\n\n

German firms also said market access barriers and regulatory hurdles stunted their growth in China, with 66% of firms saying they’ve encountered either direct or indirect market access restrictions.<\/p>\n\n\n\n

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\u00a0\u2026click on the above link to read the rest of the article\u2026<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Global Supply Chains Imploding As Quarter Of German Firms Plan To Leave China\u00a0 The Bussiness Confidence Survey 2019\/20 published by the German Chamber of Commerce in China, in cooperation with KPMG in Germany, finds that almost a quarter of German companies operating in China are preparing to relocate production facilities.  The survey was conducted from late July through […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[27578,359,16400,805,3222],"class_list":["post-49597","post","type-post","status-publish","format-standard","hentry","category-economics","tag-business-confidence-survey","tag-germany","tag-global-supply-chains","tag-trade","tag-trade-war"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49597"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49597\/revisions"}],"predecessor-version":[{"id":49598,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49597\/revisions\/49598"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}