With 1.4 billion consumers, rapid tech innovation, and a growing appetite for advanced packaging, international markets – from China to Southeast Asia – present immense opportunities and evolving challenges. Daniel Yoo, VDMA’s Chief Representative in Shanghai, explains why it’s time to go beyond traditional exports, where German strengths really shine, and how to adapt the “Made in Germany” ethos for the modern global stage.

China’s packaging market is evolving fast. Why should global manufacturers keep a close eye on it?

China continues to be an extremely exciting market, especially in the packaging sector. Just imagine: 1.4 billion consumers, including 400 million in the middle class. The country’s economic development over the past few decades has been unparalleled – more than 800 million people have escaped poverty since 1990. Naturally, this brings about entirely new expectations for packaging, especially in the food sector. The Chinese not only cherish their traditional cuisine but are also embracing Western trends, from bread and fast food to organic products.

As Chinese packaging machinery improves, how can international players remain competitive?

To be honest, the competition has become much tougher. China is still our second most important export market, but local manufacturers are now on par in many areas – and often 40 to 50 percent cheaper. To succeed here, companies need to offer more than just “Made in Germany.” Three things are key: First, local presence – production and supply chains on the ground. Second, flexibility – standard machines no longer suffice; customers want tailored solutions. And third, genuine partnerships – especially in areas like AI and digitalization.

The skyline of Shanghai.
Credit: unsplash/Ralf Leineweber

For companies worldwide, China is both a growth engine and a strategic challenge. How do you navigate that tension?

The days of simply exporting are definitely over. But there are still plenty of opportunities for those willing to adapt. Our strength today lies less in mass production and more in highly specialized solutions. Take this example: German precision engineering combined with Chinese digital expertise. It’s important to understand that Chinese customers value not just the technology, but above all speed and service.

Can standard European or Western machines still meet China’s market demands?

Frankly, no. We can’t compete on price in the mass market. But when it comes to specialized solutions, we still shine. Take sustainable packaging, for instance: our technology combined with China’s digital capabilities creates entirely new solutions. Or consider local products like liquid-tight tea bags – here, German engineering and Chinese market insight form the perfect synergy.

Does the reputation of “Made in Germany” – or any legacy manufacturing label – still carry weight in fast-moving markets like China?

Yes, but we need to rethink it. Our strength today is the combination of German engineering tradition and China competence. A concrete example: recycling technology equipment “Made in Germany” paired with Chinese QR code solutions for traceability. Or German precision mechanics with Chinese sensors for predictive maintenance. Whoever succeeds in China is also well-positioned globally.

Which Chinese regulatory trends should global packaging technology providers be tracking closely?

We’re currently focused on three major trends: First, the “Dual Carbon” goals – China aims to be carbon-neutral by 2060, which directly affects our industry. Second, the new GB standards for food packaging – these require closer collaboration with local partners. And third, cybersecurity regulations – data increasingly needs to be stored locally, which impacts our IT strategies.

What does the EU’s “de-risking” approach mean in practical terms for companies doing business in China?

Most of our members are adopting a “China plus One” strategy – China plus a second market in Southeast Asia, for example. But to be honest, most companies tell us that China remains indispensable. The successful ones are those that win local business in China. That includes having the courage to develop and design locally.

If you had to give a bit of strategic advice to an international packaging firm entering China in 2025, what would it be?

Be on the ground, think hybrid, and leverage China’s dynamism. Set up development teams in places like Shenzhen, Shanghai, or Suzhou, tap into the local ecosystem, and actively shape the market, instead of just reacting. China is changing rapidly – and we need to evolve with it.

About Daniel Yoo

Yoo has been Chief Representative of the VDMA (German Engineering Federation) office in Shanghai since 2012. Born in Germany with South Korean roots, he studied East Asian economics and politics. Yoo has lived and worked in China for 17 years altogether.

About VDMA

VDMA (Verband Deutscher Maschinen- und Anlagenbau) is Europe’s largest industry association for mechanical and plant engineering. It represents over 3,600 companies and supports global competitiveness through advocacy, technical expertise, and international networks—including offices in China, India, and Brazil.

About swop

swop (Shanghai World of Packaging) is Asia’s leading trade fair for processing and packaging. As a member of the interpack alliance, it brings together international exhibitors and decision-makers from key industries. swop offers the ideal platform for market entry, innovation, and networking in the dynamic Asian packaging market.
Next event: November 25–27, 2025 in Shanghai.

Image: swop

Reinventing “Made in Germany” for the Global Market: Lessons from German Packaging Machinery in China

China’s packaging market is evolving fast. Why should global manufacturers keep a close eye on it?

As Chinese packaging machinery improves, how can international players remain competitive?

For companies worldwide, China is both a growth engine and a strategic challenge. How do you navigate that tension?

Can standard European or Western machines still meet China’s market demands?

Does the reputation of “Made in Germany” – or any legacy manufacturing label – still carry weight in fast-moving markets like China?

Which Chinese regulatory trends should global packaging technology providers be tracking closely?

What does the EU’s “de-risking” approach mean in practical terms for companies doing business in China?

If you had to give a bit of strategic advice to an international packaging firm entering China in 2025, what would it be?

About Daniel Yoo

About VDMA

About swop

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