Germany is the largest economy in Europe. Driven by economic growth since 2010, employment rate of Germany is keeping improving. In 2017, unemployment rate of Germany dropped to 5.7%, lowest of the last 25 years. Meanwhile, income of Germans is steadily rising. Annual average income growth rate of Germans is 1.1% after accounting for inflation. It is widely agreed Germany has a balanced economic structure and sound fundamentals, thus German growth momentum maintains strong.
From 2010 to 2017, German annual average growth rate of investment in fixed assets is 2.5%. Financial conditions of German government at all levels are healthy. In 2017, fiscal surplus of German government is up to 36.6 billion Euros, accounting for 1.1 percent of German GDP. Core inflation rate is steadily rising to 1.4% and it is estimated to rise to 1.6% at 2018, which is in the ideal target range for fiscal policy. Moreover, stable prices provide a favorable monetary environment for economic operation.
In 2013, President Xin Jinping proposed the Belt and Road Initiative (BRI) and it gained wide support from international community. In May 2017, China successfully hosted the first BRI international cooperation summit forum. Over 100 countries sent delegates to attend the forum. So far China has signed cooperation agreements with over 80 countries and international organizations. Germany is one of the earliest countries in Europe expressing welcome to BRI. German Commercial and Industrial Association representing German business community and Trade and Investment Agency jointly issued a research report <New Silk Road--China's large scale investment projects> pointing out that BRI proposed by China created a huge opportunity for Germany enterprises. Under framework of BRI, faster and more convenient transportation routes have been opened in succession between China and Europe. Infrastructure of countries along the routes is continuously improving, which is not only facilitating trade between China and Germany, but also creating a large market for German enterprises and a good chance for German businesses to cooperate with the third-party market.
Fig.1. GDP of Germany (Unit: trillion U.S. dollars)
Source: World Bank
Statistics from Eurostat indicates German import and export continued to increase in 2017 with a total trade volume 2615.95 billion dollar. Among that, export volume is 1448.8 billion dollar, increasing 8.6% and import volume 1167.16 billion dollar, increasing 10.6%. Trade surplus of Germany is 281.64 billion dollar, increasing 0.9%.
Table 1 Exports to major trading partners of Germany in 2017
Source: China's Ministry of Commerce
Table 2 Imports from major trading partners of Germany in 2017
Source: China's Ministry of Commerce
From national angle, in 2017, top 4 countries that Germany exported most are USA, France, China and UK. These 4 countries accounted for 30.3% of total German export. USA, UK, France, Austria and China are top 5 sources of German trade surplus. Trade surplus with the 5 countries is 74.99 billion dollar, 48.9 billion dollar, 41.41 billion dollar, 20.58 billion dollar, 17.04 billion dollar, respectively. German trade deficit is mainly from Holland, Belgium, Czech. Trade deficit with the 3 countries is 61.22 billion dollar, 17.75 billion dollar, 9.51 billion dollar, respectively.
Fig.2. The amount and proportion of major export product of Germany in 2017
Source: China's Ministry of Commerce
From angle of goods, mechanical and electrical products, transport equipments and chemical products are the main goods Germany exported. Transport equipments reversed downtrends, increasing 4.6%. Mechanical and electrical products, transport equipments and chemical products are also top 3 goods Germany imported. In 2017, Germany imported these 3 goods 579.43 billion dollar, accounting for 49.6 % of total import.
Statistics from Chinese Ministry of Commerce indicates that bilateral trade volume between China and Germany is 180.57 billion dollar in 2017, increasing 11.2%. Germany exported 98.8 billion dollar to China, increasing 16.2% and accounting for 6.8% of total German export, growing 0.4% more than last year. Germany imported 81.77 billion dollar from China, increasing 5.7% and accounting for 7.0% of total German import, dropping 0.3% less than last year. Trade surplus of Germany to China is 17.04 billion dollar in 2017, increasing 121.4%. China is the third largest export market and second import source of Germany.
Mechanical and electrical products have always been the largest goods which Germany exports to China. In 2017, total export volume of mechanical and electrical products from Germany to China is 36.73 billion dollar. Transportation equipments are the second largest goods which Germany exports to China. In 2017, total export volume of transport equipments from Germany to China is 30.92 billion dollar. Optical, clock and medical equipments are the third largest goods which Germany exports to China. In 2017, total export volume of optical, clock and medical equipments from Germany to China is 8.22 billion dollar. These top 3 products accounted for almost 80% of total export volume from Germany to China. In 2017, China was one of the fastest growing markets for German exports, increasing 16.2%, second only to German exports to Russia, increasing 22.9%.
Main goods Germany imported from China are mechanical and electrical products, textile and its raw materials, furniture and toys. In 2017, total import volume of these 3 goods from China to Germany is 55.47 billion dollar, accounting for 67.8% of total Germany imports from China.
Table 3 Bilateral trade between Germany and China（2012-2017）
Source: China's Ministry of Commerce
Hamburg port is located on the right bank of downstream of Elbe River, northern Germany. It is about 76 kilometers to Elbe River estuary and border on Heligoland Bight. Hamburg port is the largest port in Germany and second largest container port in Europe. It was founded in 1189 and now it grew into the world's biggest free port. A world's biggest warehousing city was built in its central zone, covering an area of 500,000 square meters. Hamburg port is the most important transshipment port of Europe. Moreover, it is an important railway and air hub of Germany. Its urban district spans over two sides of Elbe River. River courses and bridges are everywhere in Hamburg. Transit tunnels were set up to connect two sides of Elbe River. Hamburg has a well-developed industry and commerce and it is German shipping-building center.
Fig.3. Container throughput of Hamburg Port（Unit: '000 TEU）
Source: www.smu-cemil.com
Fig.4. Dry bulk and liquid cargo throughput of Hamburg Port（2011-2017）
Source: www.smu-cemil.com
Hamburg port is the largest port in Germany and second largest container port in Europe. Besides, Hamburg is also an important hub of China-EU line trains in Germany. China-EU line trains refer to trains operating between China and EU with fixed time-table, roads and schedule. In recent years, China Railway Corporation kept expanding numbers of China-EU line trains, boosting China's opening-up and economic and trade exchanges with countries along the Belt and Road. Currently, China-EU line trains have become landmark achievements of the Belt and Road construction, which are praised as iron and steel camel caravans in the Belt and Road.
Since the opening of China-EU line trains in 2011, they started from scratch and developed rapidly. 17, 42, 80, 308, 815, 1702 China-EU line trains were operated respectively from 2011 to 2016. In 2017, China-EU line trains had an explosive growth and 3673 line trains were operated, increasing 116% and more than the sum of trains operated in previous 6 years. In 2018, they maintain a momentum of quick growth. In the first half of 2018, 2490 line trains were operated, increasing 69% compared with the first half of 2017. It has initially realized heavy carriage back and forth. The ratio of return train is steadily growing.
On March 28, 2018, the first "Xiang Han Ou" international freight line train (Wuhan, China-Hamburg, Germany) started its journey from Xiangyang, Hubei, China. It was loaded with engines, auto components and parts, bearings and instruments manufactured in Xiangyang, Hubei, China. During its journey, extra "Han 0u" carriages were joined the train in Wuhan. Passing through Alashan customs, China, it headed for Hamburg, Germany, 12000 kilometers away from China. It marks the first operation of "Xiang Han Ou" international freight line train for China-EU Wuhan line trains. The whole journey of "Xiang Han Ou" international freight line train took 15 days. This is another try for shared mode of "Han 0u" line trains since it operated "Yi Han Ou" line trains, starting from Yichang, Hubei.
On August 26, 2018, China-EU line train (Hamburg, Germany- Wuhan, China) No. X8044 arrived smoothly at Wuhan, which means the total China-EU line trains operated reached 10000 times.
Previously, components and parts bought from Germany were usually transported to China by sea. The transportation process was complex and transportation time was as long as 45-50 days, which resulted in high cost. Now, the transportation mode is changing into China-EU line trains. The change shortens transportation time and reduces transportation cost.
