German plastics and rubber machinery manufacturers are employing an increasing number of people in China. This was the conclusion of a survey conducted by Fiducia Executive Search and plastics and rubber machinery association VDMA Kunststoff- und Gummimaschinen (KuG, Frankfurt / Germany; http://kug.vdma.org) that showed employee numbers for German and Austrian machinery manufacturers in China have increased steadily over the past seven years. The KuG was unable to supply specific figures in response to a Plasteurope.com enquiry.

The wages of Chinese employees have additionally undergone a sharp increase since 2017. In 2018 alone, they rose by an average of 6-7%, according to the VDMA's "Wage report China 2018/19". Florian Mikulasch from VDMA added that "in most cases," the rate of increase was between 6% and 10%. This growth is due, on the one hand, to the generally higher cost of living in China and, on the other hand, to stronger competition between skilled workers and a rise in the minimum wage. By comparison, Chinese wages in the manufacturing sector rose by 7.7% on average in 2018.

"These developments confirm the changes that we are seeing in the Chinese plastics industry today. Despite the declining trend in the Chinese automotive sector and the globally deteriorating reputation of plastics, new opportunities are opening up for China in other segments," said Mikulasch.

German and Austrian companies such as Arburg, KraussMaffei and Engel have different approaches to the Chinese market regarding local business strategies, which was highlighted at the recent "Chinaplas" trade fair in Guangzhou, Guangdong – see Plasteurope.com of 06.06.2019.