Exporting to Asia
October 4, 2007
German Economics Minister Michael Glos will open a two-day German economic conference with the Asian-Pacific region in Seoul, South Korea, on Thursday, Oct. 4. Ahead of the conference he spoke to Deutsche Welle about the importance of doing business in Asia.
Deutsche Welle: The Asia-Pacific Forum this week will concern itself with exports. What results do you expect from this event?
Michael Glos: Asia has become the most important export market for the German economy. This is not just a small delegation, but a very important economic meeting. It's also a chance for German managers working in Asia to exchange experiences. But above all else it's a sign that we have a close economic partnership with South Korea. Last, but not least, I hope that these discussions will be strengthened by the visit.
But it's not just about South Korea, it's about a much, much bigger Asia and the Pacific region. The head of the committee, Jürgen Hambrecht, has said that there are still many opportunities for German companies -- not only in India and China but also in Japan, Australia and New Zealand. Do you agree?
Yes, I have a similar point of view. But it is much more difficult to get a foot in the door in the Japanese market than the Chinese market. But, in general, I agree with you that the larger region needs to be examined. That includes an economically strong region like Malaysia, which is developing more and more. I also think that we have to strengthen our contact with Indonesia, now that political stability there has improved. So there's a lot to do.
Trade in one direction is good, but so is trade in two directions. What about more investment flowing into Germany from that region?
That's something we are promoting in [South] Korea. The country, naturally, has high-performing companies that are interwoven throughout the world, and we would like that they also invest in Germany.
The euro is going from one record high to another. What's your view of the situation, particularly for Germany's export-oriented economy?
Our invoices are in euros, except for airplanes and certain other products, so it's not going to hit us as quickly. But, naturally, when the exchange rates move too far apart there's a chance our exports will suffer. But our products are mainly bought because they are technologically first-rate and because the German economy and investment goods in particular compete on the basis of quality, not price.