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For the first time in China, the EMTE-EASTPO Machine Tool Exhibition was held at the Shanghai New International Expo Centre from the 14th until 17th of July 2014. This international event represents one of the world's largest exhibitions on machinery and machine tools and attracted more than 650 exhibitors from all around the world, especially from Europe, to Shanghai this year.

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China is the largest consumer of food and beverage in the world. With its estimated market volume for food of over a trillion Euros in 2015, China overtook the US as the largest market for food and beverages. According to the World Bank, China’s food consumption will continue growing rapidly over the next two decades driven by income growth and changing food consumption patterns. Foreign food companies in Chinese market have a huge opportunity to grow independently from mature home markets.

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The 1st of July 2014 marks a major milestone in the relations between China and Switzerland as the Sino-Swiss Free Trade Agreement (FTA) officially came into force. After starting talks as early as 2007 and holding numerous negotiation rounds, both countries eventually agreed on major trade facilitations to be effective as of July 1st 2014.

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The most popular automotive brand in China is without a doubt Volkswagen – not only within the imported brands but also on the general market. I have to admit, it is quite impressive how Volkswagen has managed to dominate the Chinese market during past years by introducing targeted products and forming successful Joint Ventures. German automotive brands are the second most popular in China, only surpassed by Chinese and followed by Japanese, American and South Korean manufacturers. Although labour costs will surely continue to rise in the upcoming years, this trend is accompanied by an increase in demand for higher quality.

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Foreign connoisseurs often note that Chinese consumers are not educated in the art of drinking wine. Nonetheless, the German Wine Institute, the global marketing organization for German wine, estimated an increase in demand by 170 percent in merely six years leading up to 2011. Although this upwards trend is gradually reversing, China is expected to become the largest market for wine worldwide by 2016. Domestic production in China is concentrated in North-Eastern provinces where the climate most resembles that of Mediterranean Europe – home grown wine accounts for roughly 80 percent of Chinese consumption leaving the remainder to be imported from abroad.

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In this article we have a look at the motives of Chinese investors for investing in Germany and how German companies can benefit from the relationship with their new Chinese owners.

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