German Firms Cite 'Unfair Competition' in China, Survey Reveals

10.04.2024

A survey by the German Chamber of Commerce in China has revealed that two-thirds of German businesses feel they face 'unfair competition' in China, particularly due to restricted market access and local disadvantages. This sentiment comes as German Chancellor Olaf Scholz prepares for a visit to China, where economic ties and trade relations are already tense. German companies, especially in manufacturing and automotive sectors, express confidence in their product quality and innovation but feel outmatched in cost efficiency and speed to market compared to Chinese firms. The survey indicates a shift in German companies' investment strategies in China, focusing on competitiveness rather than growth. Despite challenges, including increased cost pressures and reduced market share, 79% of businesses plan to continue their investments in China. The upcoming talks between Chancellor Scholz and Chinese leaders are anticipated to address these business concerns amid Berlin's strategy to 'de-risk' from China and ongoing economic frictions.

This news was created based on this article.