Tobias Bartz’s Post

A thought-provoking reflection on Europe’s economic trajectory! 🌍 It’s true that Europe faces challenges, but it also holds immense potential for innovation and growth. As the world becomes increasingly interconnected, Europe’s role remains pivotal. Let’s continue to foster collaboration, invest in cutting-edge technologies, and build a sustainable future. 🚀🤝 #Europatag #Innovation #GlobalEconomy Additionally, I believe that large companies have a crucial role to play. They should actively nurture talent, create meaningful impact, and uphold environmental and social responsibility. Let’s strive for a business landscape that not only thrives economically but also contributes positively to society and our planet. 🌱💡 #CorporateResponsibility #Logistikhelden

Quote : The degree to which Europe has lost ground to the U.S. in terms of economic competitiveness since the turn of century is breathtaking. The gap in GDP per capita, for example, has doubled by some metrics to 30 percent, due mainly to lower productivity growth in the EU. U.S. tech companies, for example, spend more than twice what European tech firms do on research and development, according to the International Monetary Fund (IMF). While the U.S. companies have seen a 40 percent jump in productivity since 2005, productivity in European tech has stagnated. In 2003, the top corporate investors in R&D in the EU were Mercedes, VW and Siemens, the German engineering giant. In 2022, they were Mercedes, VW and Bosch, the German car parts-maker.  In 2003, the biggest corporate spenders on R&D in the U.S. were Ford, Pfizer and General Motors. Two decades later, it’s Amazon, Alphabet (Google) and Meta (Facebook). ............

Chancellor Olaf Scholz was in Beijing until yesterday with an economic delegation to discuss economic issues with Xi Jinping and Li Qiang, among others. As is known, the German government called for a so-called, controversial "de-risking strategy" regarding China in 2023 – and finds the government in a slightly recovered situation – GDP growth in the first quarter of 2024 increased to 5.3%. "De-risking" is not to be understood as "de-coupling" from the EAC's point of view, but as the requirement for a strategically broader and more balanced positioning of supply chains and sales markets for European companies. Unilateral dependence on China is to be reduced in every area of value creation. The German economy in China has rightly criticized unfair framework conditions compared to Chinese companies for years. One approach for a continued successful positioning in the fiercely competitive Chinese market is the development and expansion of individual entrepreneurial competitiveness in the local market. The CEO of Mercedes Benz, Ola Källenius, formulated this to ARD as follows: "The best protection is to be competitive. And if you start to build trade barriers, first one and then the other, that leads in the wrong direction". According to a study by the Chamber of Commerce and Industry (AHK) in China, almost 80 percent of German companies justify new investments in China by the need to remain competitive in the billion-dollar market – and must. Because Chinese companies are becoming increasingly dominant in innovation and development, as EAC studies for the European Commission currently show. To remain technologically competitive, Germany must therefore not slacken in terms of innovation and must face the challenges in the Chinese market with the maximum possible and regionally intelligently positioned localization. EAC International Consulting has been assisting the German economy in strategic positioning in Asia for 30 years with > 6 offices – including one of the largest EAC companies in Shanghai; led by German and Chinese international managers and teams. For a more in-depth discussion, please feel free to connect with EAC International Consulting Partner Uwe Haizmann #EAC #China #Shanghai #De-risking #strategicpositioning #supplychain #riskdiversification

Europe is a place for champions 🏆  When we discuss medium-sized global market leaders, we often refer to the 'hidden champions' in Germany, those that are market leaders in their industry and only well-known there. This term can also be applied to the #EU economy on a macroeconomic level, highlighting its unique strengths. Considering its vast potential, it needs to be more self-assured. And it has every reason to be, as the numbers clearly demonstrate. 👉Collectively, the 27 member states of the European Union form the third largest economic power in the world. When it comes to global goods exports, the EU ranks second, just behind China and well ahead of the USA.  👉 The EU accounts for around 14% of international trade in goods. China, the EU, and the United States are the three biggest players in international #trade.  👉According to the Global Innovation Index 2023, five of the top 10 most innovative economies are EU members, with Sweden ranking above the USA.  👉Economic giants like the USA and China depend on the EU in many areas, such as lithography systems for semiconductor production.  We owe this success to an economic area built on free trade and cross-border cooperation, which lays the foundation for prosperity and growth. This makes it crucial to set the right course for Europe's future. We are in a historic phase of #transformation, and to emerge stronger from this period, I expect future political leaders to have a powerful vision.   The strategic political decisions made today will shape the future of the European economy. Effective policies are crucial to ensure that the EU not only maintains but also strengthens its competitive edge in the global market. Let’s raise our voice in the upcoming election on June 9 to make the EU a visible champion. 💪 #EuropeanElections #TimeToVote #Rhenus Rhenus Logistics

🇩🇪🇨🇳 Germany's Industrial Challenge: Facing the Chinese Headwind 🏭🌬️ Allianz Trade's study reveals a concerning trend for German industry. 📊 China is gaining ground in key sectors, even in Europe, Germany's traditional stronghold. 🔄 German companies face declining market shares and profits in China, with repercussions felt back home. 💪 However, with investments in green energy and R&D, there's hope for a resurgence of "Made in Germany". #germanindustry #chinacompetition #globaltrade #economicshift Full read here: https://lnkd.in/d4YEEmwp

Writer,explaining miraculous economic achievements of China thinks: Behind international relations are always interests, and today's reversal of China-U.S. and China-West relations is no different. In the 1980s, the U.S. forced Japan to sign the Plaza Accord, employing policies such as market access, tariffs, and exchange rates to suppress Japan's economic rise. This led to three decades of stagnation for the country. Consider the data: in 1995, Japan's GDP was twice that of Germany, eight times that of China, four times that of the UK, and ten times that of South Korea. Japan's economy accounted for 73% of the U.S. GDP. A country with a population of 130 million had an economic scale reaching 73% of that of the U.S., and had completely surpassed the U.S. in the semiconductor industry—what an astonishing miracle! By 2022, however, everything had reversed. China's GDP is now 4.5 times that of Japan, and the U.S. is six times Japan's GDP. Japan is now 2.5 times larger than South Korea, and Germany has surpassed Japan. The Japanese electronics giants that once dominated China in the 1990s—Sony, Panasonic, Toshiba, Sharp, and Sanyo—are now a thing of the past. The Plaza Accord and the U.S.-Japan Semiconductor Agreement basically knocked Japan down Similarly, the competition in high-tech fields is not an ideological issue; at its core, it is a struggle for interests. If the United States could treat its close ally Japan as it did, what would it do to China? As former Singaporean Ambassador to the U.S. Chan Heng Chee said, the U.S. stance on high-tech industries is, essentially: "It is ours", emphasizing that these sectors are their exclusive domain, which cannot be automatically ceded. Over 20 years ago, renowned U.S. economist Paul Samuelson had a conversation with Peking University Professor Zhou Qiren. At that time, China could only produce clothing, shoes, and hats and engage in processing trade, while the U.S. dominated high-tech industries—this is why the trade model was often described as "700 million shirts in exchange for one Boeing aircraft," [800 million shirts for just one Airbus A380] where one shirt earned just one yuan. It was a mutually beneficial system with little conflict. Professor Zhou made a hypothetical: What would happen if China decided to manufacture large aircraft one day? Samuelson immediately responded, without hesitation, that it would be America's "permanent measurable loss. Thomas Friedman is a columnist for The New York Times and a proponent of globalization. His major work The World Is Flat once enjoyed immense popularity in China. Recently, he said: "When China sold us only shallow things, politically speaking, we didn't care whether China was authoritarian, communist, libertarian or vegetarian. It didn't matter because you were just selling us shallow goods." This is his exact quote. His version of globalization essentially seeks to position China as the West's cash cow....

🏭 Industry Under Pressure: The Story of German Companies Finding Solace in China 🌏 Navigating New Horizons: The Strategic Pivot of German Industry to China In a gripping tale of corporate survival and strategic foresight, German industries are navigating through their most precarious phase yet. Traditionally strongholds in the European market, these companies are now facing stark realities. With the U.S. offering both opportunities and significant challenges, German Chancellor Schulz's recent engagements in China highlight a crucial strategic pivot, seeking a safer and more promising growth environment for German enterprises. 🤝 From Challenges to Opportunities: German Industries Embrace China As Schultz directs his gaze towards the East, it's evident that the allure of China isn't just about survival—it's about thriving. The data speaks volumes: a record-breaking 12 billion euros of direct investments in 2023, with titans like BASF and Wacker Chemical experiencing exponential growth. This shift isn't just a business move; it's a calculated leap towards sustainable success, ensuring German industries can leverage Chinese growth potentials to rebound on the global stage. ⚖️ Weighing the Scales: The U.S. Versus China in German Industrial Strategy The contrast couldn't be starker. While over sixty prominent German companies like Lufthansa and Siemens have ventured into the U.S. since 2023, the anticipated American dream contrasts sharply with reality. Challenges from delayed compensations to complex legal battles over land and labor issues highlight the rocky journey in the U.S. Conversely, China presents an area of stability and potential—qualities that Schulz is keenly capitalizing on to safeguard the future of German industry. Schulz's strategic maneuvers are about setting a course for global impact, innovation, and ideation. As industries worldwide watch and learn, the German approach underscores a profound narrative of resilience and strategic recalibration. #China #Germany #BusinessStrategy #EconomicGrowth #InternationalRelations #Trade #Investment #Technology #Leadership #Manufacturing #innovation #ideation #GlobalImpact

"The future of European competitiveness", a report by Mario Draghi has been released this week.   The report identifies major barriers to competitiveness in Europe, and offers concrete recommendations to tackle them.   🔎 Some highlights from the report:   🔸 Europe largely missed out on the digital revolution led by the internet and the productivity gains it brought; 🔸The EU is weak in the emerging technologies that will drive future growth. Only four of the world’s top 50 tech companies are European; 🔸Rising geopolitical risks can increase uncertainty and dampen investments. Europe is particularly exposed, as we are heavily dependent on foreign suppliers for critical raw materials and on imports of digital technology (for chips production, 75-90% of global wafer fabrication capacity is in Asia); 🔸Even though energy prices have fallen considerably from their peaks, EU companies still face electricity prices that are 2-3 times those in the US. Natural gas prices paid are 4-5 times higher; 🔸By 2040, the workforce is projected to shrink by close to 2 million workers each year; 🔸The defence industry is too fragmented, hindering its ability to produce at scale, and it suffers from a lack of standardisation and interoperability of equipment, weakening Europe’s ability to act as a cohesive power.   🔎 Concerning the issues we face:   🔸Fragmentation of the Single Market hinders innovative companies that reach the growth stage from scaling up in the EU, which in turn reduces demand for financing; 🔸Europe is stuck in a static industrial structure with few new companies rising up to disrupt existing industries. In fact, there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years, while all six US companies with a valuation above EUR 1 trillion have been created in this period; 🔸Public spending on R&I in Europe lacks scale and is insufficiently focused on breakthrough innovation; 🔸We continue to add regulatory burdens onto European companies, which are especially costly for SMEs and self-defeating for those in the digital sectors. More than half of SMEs in Europe flag regulatory obstacles and the administrative burden as their greatest challenge.   To read the full report: https://lnkd.in/eAk84kkG

Time to get out of the hammock! Give this Politico article a read and think about why we Europeans should all work harder, put more money and effort in innovation, invest are savings in (EU) companies instead of letting inflation eat away growth …and last but nog least… get very worried. An unconvenient European truth. #prosperity #growth #economics #politics #society #future

We are all #Detroit? Germany really be the next Detroit? After the Industrial Age. The automotive industry has shaped both Detroit, in the #US, and Bochum as well as other locations, in Germany. How #Germany struggles to protect its crown-jewel? Are developed countries afraid of losing their competitive advantages to emerging economies? The latest development of investment protection in the US, Germany and on the #EU level might lead us to believe so. These developments are not necessarily directly related to the current surge in Chinese investment inflows, but the increase has certainly been a wake-up call for developed countries. And it is not just the increase, but the role of the state in investment and influence. In this context it is important to know that #China has a policy specifically targeting the manufacturing industry. It was established in 2015 and aims at developing the Chinese economy from a "big manufacturing country" to a "leading #manufacturing power," by 2049. It is interesting to see which sectoral priorities have been set in a 2025 strategy to achieve the goals: - New advanced information technology - High-end computerized machines/ numerical control tools and robotics - Space and aviation - Maritime equipment and high-tech ships - Advanced railway transportation equipment - Energy saving and new energy vehicles - Energy equipment - Agricultural machinery - New materials - Biopharma and high-tech medical devices Below is an excerpt of the main tasks of the 2025 strategy: - improving manufacturing innovation - integrating information technology & industry - strengthening the industrial base - fostering Chinese brands - enforcing green manufacturing - promoting breakthroughs in 10 key sectors - advancing restructuring of the manufacturing sector - promoting service-oriented manufacturing & manufacturing-related service industries Last but not least, the aim of the Chinese government has been to replace foreign machinery with domestic ones, while climbing up the value chain. In the end, we have to ask ourselves whether we in Germany can develop and implement a strategy similar to China that will survive the legislative periods and not go in all possible directions every three years. More https://lnkd.in/dzT_VBfw Handelsblatt manager magazin Frankfurter Allgemeine Zeitung