Germany is losing its global dominance in yet another key industry:
For the first time, China’s machine tool manufacturers have replaced Germany as the world’s leading exporter in 2025.
Details
The changing of the guard: China claims 21.6% of the global export market, while Germany falls to 16.7%. While German exports slumped by 10%, Chinese exports grew by 18%.
❝“We all read the five-year plans. Machine tools have been one of the most important focal points there for two decades.”
— Franz-Xaver Bernhard, Chairman of the VDW
China conquers Europe: The share of Chinese imports in the EU has doubled to 10% in six years. In Germany, China is already the fourth most important supplier—behind Switzerland, Italy, and Japan.
Price pressure as a weapon: Chinese machines are significantly cheaper than German, Japanese, or Italian models. Bernhard is calling for anti-dumping proceedings: "We need a level playing field."
Good to know: Why machine tools are so important
Machine tools are the foundation of all industrial production. Without turning, milling, drilling, and grinding machines, there would be:
- No cars, wind turbines, or bottling plants
- No artificial hip joints
- No lenses for smartphone cameras
Background
China has been preparing for this shift in power for 20 years through its five-year plans. Chinese manufacturers are now heavily integrating European components (controls, sensors) but offering the final products at a much lower price—often supported by state subsidies.
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
