Eng
Business sentiment among German companies in China is at an all-time low. Over half of German companies said conditions in their industry had worsened this year, the German Chamber of Commerce in China said citing a survey, while only 32% forecast an improvement in 2025 – the lowest since records began in 2007.
The Chamber also said that companies were, for the first time, reporting that they were contending with a “Buy China” trend boosted by Chinese President Xi Jinping’s self-sufficiency drive “Made in China 2025” resulting in local customers opting to buy from local producers.
However, 92% of German companies planned to maintain their operations in China’s $19 trillion economy. The Chamber said 51% of German companies planned to step up their investment in China over the next two years to keep up with local competitors.
Germany is China’s biggest European partner, and prominent German firms with large investments in China include automakers Volkswagen and BMW, as well as auto parts supplier Bosch. Volkswagen is doubling its China investment by extending its partnership with Chinese partner SAIC.
Source: reuters.com