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It's a German company 
with a long tradition.

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EBM Papst has made and sold
ventilation systems and fans in China

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for nearly three decades.

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It's business there is a success and
yet the company is playing it safe,

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making operations in both
Germany and China self-sufficient.

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That's because of frequent
supply chain disruptions.

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A new head office in Shanghai
could help with those plans.

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We've been already doing
local for local for many years.

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And we are trying
to decouple supply chains.

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And we also trying to develop
and prepare for different

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scenarios with various plans.

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For instance, we can relocate
production from China to India within

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two to three months, even though
that's not something we expect

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to do now.

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More German companies are including
decoupling plans in their strategies

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so that business can continue
amid geopolitical tensions.

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China too,

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is trying to reduce dependence on
other countries by strengthening

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its domestic market.

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China remains Germany's top trade
partner, with a trade volume of

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around €253 billion.

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Germany mostly exports
cars and auto parts to China, in

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addition to various machinery.

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That makes it one of China's
top five trade partners.

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But now, with China's increasing
dominance in the electric vehicle

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industry, more Chinese made
EVs are coming to Germany.

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Their lower prices are putting
German carmakers under pressure.

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It's the same with solar panels
and wind turbines.

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Chinese products are massively
subsidized by Beijing,

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and European manufacturers
can barely compete.

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Chinese product prices push
them to the brink of ruin.

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That's why Germany and
the European Commission are taking

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measures to curb
unfair competition and protect

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the domestic market.

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They are considering
introducing tariffs.

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On select Chinese products.