Trade conflict
How the customs dispute is based on German companies in China
Even if Beijing and Washington argue: German companies in China also feel the customs war. The companies are trying to counteract – and have claims to the new federal government.
German companies in China are becoming increasingly pessimistic into the future because of the trade conflict between Beijing and Washington. A survey by the German Chamber of Commerce (AHK) in China showed that 56 percent of the member companies surveyed expect a deterioration in the economic situation in the coming six months. A year earlier, this said 16 percent and thus significantly less.
“Overall, it damages everyone,” said Oliver Oehms, managing board member of the AHK in northern China, with a view to the tariffs. The members clearly said that the economy in China would probably be damaged. “If not directly, our member companies will be affected by the dividing or deteriorating economic situation in China,” said Oehms.
Since the escalation in the customs dispute in early April, trade between the USA and China has been virtually broke. Donald Trump imposed on goods from China. Beijing defended itself to imports from the USA with 125 percent tariffs. Next weekend, US Finance Minister Scott Bessent and China’s Vice Prime Minister He Lifeng in Switzerland want to speak to the tariffs.
According to the first data, both countries already feel the effects of the customs dispute. In China, the shopping manager index sank, which indicates cloudy business outlook for companies, for example in the manufacturing trade or the area of services.
How German companies feel the tariffs
According to the AHK survey from mid-April, in which 143 member companies were mainly involved in the mechanical engineering and automotive sectors, tariffs have the significant effects on the companies, along with other trade clamps, such as export restrictions.
This is also noticeable in the business prospects. A little more than a quarter expects sales increase by the end of the year. In addition, only 18 percent expect profit.
So the companies control against
38 percent of German companies in China try to cushion the effects with a faster localization on site. The trend has been circulating for a long time. This allows companies to expect more competitiveness in China or want to reduce their risk, not to meet Chinese requirements or to be dependent on international supply chains. A quarter explained to take a look at other markets for their procurement alongside the USA.
What the companies of Berlin expect
Aid also hope for German companies from Berlin. In the election campaign, Chancellor Friedrich Merz (CDU) appeared critically to China. Around two thirds and thus most of the companies surveyed demanded from the federal government in the AHK survey, a more active cooperation with China. The AHK hopes that the new federal government will see China as a partner and not just as a systemic rival, said Oehms.
In addition, around half considered an improvement in the China image in Germany to be important to help her business in China. Allegations of human rights violations, but also unfair competitive conditions for foreign companies in China, had suffered the image of the People’s Republic in recent years.
dpa
Source: Stern
