Bilateral Trade between China and Germany - Essay Example

Trade with other countries is goodZhou Siyu of the China Daily believes that bilateral trade between China and Germany will continue to grow at alarming rates. The driver of this force is the many contracts that have been made between the two countries’ governments to boost bilateral trade. Some sectors that are being focused on include the service, automobile, and chemical engineering industries. Trade between China and Germany has many benefits for both countries because the financial crisis threatens to overshadow the global market.

Times are changing, as China is now Germany’s largest trading partner outside of the European Union, having replaced the United States just recently. Germany’s imports and exports with China have increased by one-third over the last year. Even this year the growth trends remain steady, with bilateral trade experiencing a 28 percent jump from the same time last year. The truth of the matter is that Germany is attractive for the Chinese to invest in and vice-versa. These new trade connections have strengthened the relationship between China and Germany both politically and economically.

China is looking to focus more on domestic consumption, which is something that is tempting for German companies to become a part of. On the other side of the coin, China can learn a great deal about German business practices and its advanced technology. This is very important to the Chinese economy because there is a lack of technological know-how among many Chinese manufacturing companies. Reciprocally, Germany can also do with the influx of Chinese investments because of the weakened economy within the European Union.

Work CitedSiyu, Zhou. “Countries good for each other in tough times.” China Daily. 29 Jun. 2011. Web. 3 Sep. 2011.