The derisking dilemma: how German companies are tackling China risk
For the past seven years, the 55-year-old has run the Chinese unit of fan and motor maker ebm-papst, and business has been good.
But, as tensions simmer between Berlin and Beijing, ebm-papst is one of many medium-sized German companies starting to address their reliance on China, concerned at how possible Western sanctions or a future conflict over Taiwan might disrupt trade. Last year, ebm-papst launched a programme called 'Decoupling China' to ensure its Chinese division — which has around 1,900 staff — can operate if cut off from the rest of the company.
Now it's planning a new plant in India, at a cost of up to 30 million euros ($31.7 million), to supply clients in the rest of Asia and to help reduce the flow of goods to and from China. «Not putting all our eggs in one basket is always at the back of our minds,» said Nuernberger, who also serves as ebm-papst's chief sales officer.
German Chancellor Olaf Scholz's coalition unveiled in July a strategy toward de-risking Germany's economic relationship with China, calling Beijing a «partner, competitor and systemic rival».
