Tschüss, says German companies to China

Washington: Several German companies have left China, an important reason being the advent of ‘robot revolution’ that has reduced the “German companies’ desire for China,” writes media research company Chinascope in a piece titled ‘German companies exit from China’.

The research organisation attributed the observation to a report that appeared in the weekly magazine, German Focus. The journal had cited a commentary from Radio France International.

With huge market and cheap labour, China has been a perfect destination for large-scale companies to set up their shops. “However, the limitations from Chinese political institutions and the ongoing Sino-US trade war have gradually made China less attractive,” writes Chinascope.

To make the matter worse, Chinese private companies have incurred huge debts which have disturbed the Chinese economy. Amidst this, people have now started turning to a cheaper option — the robots, which don’t necessarily have to be in China.

The research organisation writes further, “As a result, the number of German companies that are shifting production abroad has decreased significantly and more and more German companies have begun to withdraw from Asia or Eastern Europe.”

The report gives examples of some German companies to substantiate the observation. Enterprises which are all for digitalisation like Marklin, Adidas, Bosch and Gigaset Communications, have been frontrunner.
“The ratio of robots to employed people in Germany is 31:1000, with the density of robots ranking third in the world,” Chinascope claims.

Economists believe this will have a domino’s effect of sorts – “the more robots used in industrial countries, the fewer factories move abroad, and the more likely it is to move production back to the home country.”

As compared to Germany, the ratio of robots to people in United States is 19:1000, with very few American companies coming back home.

[source_without_link]ANI[/source_without_link]