Business prospects
German companies in China are pessimistic about the future
Things are becoming increasingly difficult for German companies in China. Many people are worried about the future. This is not just due to competitive disadvantages in the People’s Republic.
Because of the economic problems in the country and numerous hurdles, German companies in China are more pessimistic than ever about the near future. As can be seen from the current business climate survey by the German Chamber of Commerce Abroad (AHK), only just under a third of the companies surveyed expect positive developments for their industry in the People’s Republic for the coming year – a historic low. According to the advocacy group for German companies in China, 29 percent even expect a decline.
But despite growing price pressure, ever-increasing competition and low demand, according to the survey, an overwhelming majority of German companies remain in China. However, the proportion of those who want to invest more in the People’s Republic has now fallen to around half of those surveyed.
It is becoming more important for more and more companies to pursue a local strategy in China independent of their headquarters in Germany. In order to remain competitive, the Germans want to cooperate with local companies and are investing more in research and development. As the AHK report shows, more German companies consider their Chinese competitors to be innovation leaders in their respective industries, unlike before.
dpa
Source: Stern
