In this fast-paced Chinese market, German SMEs need to quickly select the opportunities for the future and reorganise their business.

What has often been neglected, though so obvious, is an advantage for German SMEs over many Chinese competitors: their presence simultaneously in the EU market and in the Chinese market. What China demands of Chinese companies ("dual circulation economy"), German companies have already achieved: the global footprint... at least those who have invested in China for several years.

However, German SMEs must learn to develop clear strategies for future business on the basis of this "location advantage" mentioned above. 

One could learn ideas and approaches from China's five-year plan and define focus topics for one's own. Two important strategy components for industrial companies are "service" and "digitalization". In order to consistently pursue and implement these trends, German SMEs may need to completely change today's China business and the China Organization.

German SMEs need a lot of courage for a transformation, but even more the right people and talents.

2021 is the start year of the new five-year plan. Chinese companies are catching up quickly and are very well positioned in resources such as capital, technology and the market. If all competitors in the market are on the same starting line, the company's management team and talent pool will be the factors that determine the final result. Therefore, German companies are strongly advised to review their human resources. You have to make sure that there are people in the organization who can do things right and not miss others who can do the right thing.

Here we recommend to listen to the podcast program "Chinaflexpat". Enterprises can better understand Chinese human resource market. Meanwhile, Job-seekers from Europe can realistically assess the Labour market in China by means of great examples.