Business Partner-china: Opportunities And Risks For German Small And Medium-sized Enterprises

This paper describes German small and medium-sized enterprises (SMEs) that are the motorof the German economy. They provide essential part of jobs, innovation and competitivenessfor this country. More than99percent of all German firms belong to SMEs that contribute53percent of total economic output and accounts for around40percent of the overall turnover ofall the companies in Germany.It is not the big multinational enterprises that count, but small family companies with100-200employees;15million Germans work in these companies.The relationship between China and Germany is very important for both countries and thewhole global world. China′s demand was a major factor in the rapid recovery of Germaneconomy after the financial crisis in2008. Exports to China currently amount to just7percentof Germany’s total exports, making it the third-largest market for German exports. But asdemand has slowed in the EU, German SMEs are increasingly dependent on emergingeconomies and above all China.Different trade theories, rates and financial measures explain the tension of Germancompanies to expand into the Chinese market. Furthermore this work analyzes case studyabout experience of a German company in Ningbo that allowed investigating a topic verydetailed.Many SMEs do not have long experience in Chinese market. This can be very dangerous forthe entry strategy and further development in China. This work describes the opportunities ofChinese market that make it so attractive and mention risks that occur by entering China.