German industry is planning to increase its investment in China's booming economy, according to a recent survey.
China is becoming an even more important trading partner for Germany
Drawn up by Germany's Chamber of Trade and Industry (DIHK), the survey released on Tuesday, July 29, found that 40 percent of German companies that are already active in China plan to increase their investment in the Asian powerhouse economy.
The DHIK estimated that about 200,000 German jobs are now dependent on exports to China.
"Germany's trade with Asia in 2008 and 2009 will be focused on German-Chinese economic relations," the DIHK said releasing the survey.
"A third of German exports to Asia will be for customers in China," the chamber said.
Japan and South Korea are Germany's most important trading partners in Asia after China, said the DHIK.
German exports to China expected to grow
Last year about 3.7 percent of German exports were for China. Moreover, the DHIK expects China to grow in importance as a destination for German exports.
The DHIK forecasts that German exports to China will grow at about 10 percent a year in 2009 to represent almost 4 percent of total German exports.
At the same time, China's importance to the world economy will also grow, said the DHIK.
However, overhanging China's rapid economic change is the threat posed by rising inflation with the DHIK expecting prices in China to rise by about 6 percent this year.