German Chancellor Scholz will visit China this month, accompanied by executives from German companies such as BMW and Mercedes-Benz
According to a report by Reuters on April 4, German Chancellor Scholz will visit China later this month, and it is expected that executives from many German companies, including BMW and Mercedes-Benz, will go with him.
According to the report, Siemens said that the company's CEO and Chairman of the German Economic and Asia-Pacific Committee, will join the visit to China next weekend.
According to sources familiar with the situation, Mercedes-Benz also confirmed that its CEO Kang Linsong will participate in the trip.
The report said that BMW Group Chairman Zipzer and Bayer Group CEO Anderson will also travel with Scholz. According to Reuters, this visit is Scholz's first visit to China since Berlin formulated a strategy against China last summer. The strategy urges “risk reduction” to reduce economic risks in the face of China, but is vague about specific measures and binding goals.
Reuters mentioned in the headline that even if the German government pushes for so-called “risk reduction,” the CEOs of German companies are still willing to join Scholz's delegation to China.
Reuters also said that the German chancellor is usually accompanied by a senior business delegation during major foreign visits, and the list of executives visiting this time highlights China's status as Germany's largest trading partner.
For German industry, China remains extremely important, especially for car manufacturers. They and their Chinese partners operate a number of joint ventures in China, the world's largest automotive market.
The report said that the list of accompanying company executives is not final; as the itinerary is finalized, more people may join.
German media revealed in February this year that Scholz will visit China in April. Scholz led a business delegation to China in November 2022.
Despite the tough business climate, there are signs that the worst may be over for component manufacturers. Automobile production is picking up, shortages of key components such as semiconductors are easing, and raw material costs are stabilizing. The Zhitong Finance App learned that for companies like Mercedes-Benz Group AG (Mercedes-Benz Group AG) and Renault (RNLSY.US), these years have been almost extraordinary: soaring car prices have driven record profit margins.
The EU is seeking to accelerate the region's transition to electric vehicles, a shift that will require significant investment from component manufacturers.
Dominik Foucar, partner at Bain & Co in Munich said: “This is a defining moment for auto parts manufacturers, as these companies must cut costs, redesign their product portfolio, and produce cheaper products while preparing for the future.”
Auto parts related companies:
Nexteer (01316), Minshi Group (00425), Wuling Motors (00305), Zhejiang Shibao (01057), BYD (01211), etc.