China and Germany and there growing trade

China and Germany the world's two countries with the the largest trade surpass have built up strong trade partnerships over the last few years and the growing trade between China and Germany will continue for 2012 and the foreseeable future. In 2009 China pasted Germany to become the world's leading exporter and in 2010 China replaced Japan as the World's largest economy and its predicted by 2020 it will leap frog the US to become the Largest economy.

In a recent survey over 90% of German companies currently doing Business in China are very optimistic about business growth opportunities for 2012 and the next 5 years. The majority of companies surveyed expect to increase there investments in China to help aid their business growth over the next 5 years.  Most German companies will be investing in China by setting up new factories and branch Offices and over 40% of companies plan to invest in this way. For 3 out of 4 German companies China is in there top 3 of most favoured destinations for global investment and for 25%  see China as there number one priority. As it is for most companies wishing to do Business in China Human resources (recruitment) and the establishment of good Business Partners are seen as the biggest challenges when trying to develop business in China. Whether companies are well established in China or they are taking there first steps finding the right Partners who know the market, Language and Business culture are keys for success in the region. There are currently over 2000 companies who are members of the German chamber's member enterprises in China. For German Companies the turning point was in 2010 when China replaced the EU as "most favourite investment destination for business"

In 2010 China trade to Germany was over $142 billion which was over 30% of the Entire EU trade with China which makes Germany China's Largest trade partner with in the EU, the Entire EU is China's largest trade partner worldwide. China has a trade surplus with the EU but a deficit of just € 7 billion with Germany. Its estimated that trade between China and Germany grew by over 30% in 2010.

Germany and China expect to double there annual trade by 2015 and recently signed deals for over $15 billion. With in these landmark deals in June 2011 which Premier Wen Jiabao and German Chancellor Angela Merkel attended were an agreement for China's purchase of 62 A320 aircraft from Airbus SAS an agreement between Volkswagen and its partner in China FAW to build a factory in Foshan to build Electric Cars. Volkswagen also signed an agreement with  Shanghai Automotive Industry Corporation and its division  Daimler and the Beijing Benz Automotive Company to coporate on R&D in the development of engines and new products. Other projects agreeded where covering industries such as Energy, Environmental, transportation, Telecom, chemical sectors and Finance. In statements after the meeting.

"We both take the view that what is good can become better," Merkel said.

She added that China and Germany are "ideal partners" to develop electric cars, for example, and said both sides want to increase investment.

China is prepared to buy more high-quality German goods, Wen said, but he also called for Berlin to quickly grant it formal recognition as a full market economy to help remove trade obstacles.

"We are not forcing anyone into technology transfer," he said and urged Germany to seek a loosening of EU restrictions on technology exports.

German and Chinese observers recognize the potential for cooperation.

As the trade ties between China and Germany become stronger this has been seen as one of reasons Germany might not be rushing to bail out the Euro zone debt as Europe becomes less important as it was. I in the near future Germany will trade more with China then France, In the Future what happens in China will be more important to Germany then what happens in France. Germany also sees China's Bric Partners Brazil, Russia and India as excellent opportunities to grow there exports and forge stronger trade partnerships across the who Bric region and further emerging markets.