Confidence of German businesses in China hits record low, survey finds
Automotive industry remains a cornerstone of German investment, but its carmakers are being challenged by local electric vehicle innovators
The confidence of German businesses operating in China has plummeted to a historic low, according to the results of a survey released by the German Chamber of Commerce in China on Wednesday, driven by intensifying competition from local manufacturers and slowing economic growth.
For the first time, “Made in China 2025” and “Buy China” have emerged as the top regulatory challenge for German companies, the chamber said, adding that German investors are calling for fairer competition. The two campaigns encourage Chinese consumers to opt for products made by domestic manufacturers.
The survey found that the second-biggest concern was local protectionism.
Among the 537 German companies surveyed in September and October, more than half anticipated a decline in their industry development assessment this year, and only 32 per cent expected positive developments next year – the lowest level since the survey’s inception in 2007.
In addition, 60 per cent of the companies surveyed said the economic situation has worsened this year, and a third anticipate further deterioration next year.
Despite the negative sentiment, 92 per cent of respondents said they planned to continue their operations in China, a figure unchanged from last year.
