The German Chamber of Commerce in China (AHK Greater China), following the U.S., British and EU, published the results of its business temper survey among German companies operating in the PRC.
German companies operating in China indicate that they are presently facing a number of challenges, including:
- increased competition from local companies,
- unequal marketplace access,
- economic difficulties and
- geopolitical risk.
Although 83% of the companies surveyed believe that China's economy is on the way of decreasing growth, as much as 91% intend to proceed to operate in the Central State.
64% of German companies see the current situation as a temporary economical downturn and anticipate a rebound over the next year to 3 years.
42% of the companies surveyed anticipate affirmative growth in their manufacture in 2024, compared to just 21% in 2023.
78% of respondents anticipate steady growth over the next 5 years.
Although 54% of companies believe that China's investment attractiveness is falling in comparison with another markets, the same percent is planned increase their investment in this country in the next 2 years.
79% say that further investments are essential to keep their competitiveness in China.
37% believe that China's attractiveness as an innovation marketplace is expanding compared to another markets. 46% plan to cooperate with local partners to keep competitiveness.
5% of respondents consider Chinese companies to be current innovation leaders in their industry, and 46% anticipate them to become leaders in the next 5 years.
In the automotive sector, 11% of companies see Chinese competitors as innovation leaders, and 58% anticipate them to take over in the next 5 years.
32% of respondents consider legal uncertainty to be the biggest regulatory challenge.
22% of German companies surveyed say they experience unequal treatment compared to local competitors. Of these, as many as 53% of companies participating in public tenders have encountered obstacles specified as deficiency of transparency and the policy of "buy Chinese".
Companies increase hazard management – as many as 44% of them took steps to counter possible risks. Of these companies, 83% attribute their actions to geopolitical tensions.
In the light of the data collected, German companies operating in China are more attached and optimistic towards the local business environment and the marketplace than those operating in the United States or the United Kingdom. About 91% of the German companies surveyed do not plan to leave China, and they consider the chemical manufacture to be the most promising for business development.
German direct investment in China in 2023 increased by 4.3% y/y to a evidence level of EUR 11.9 billion (approximately PLN 51.65 billion). Ot, decopuling and derisking in German.
Source: china.ahk.de
Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China
Email: [email protected]
Editorial: Leszek B.
Email: [email protected]
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