Deutsche Welle Chinese Edition recently reported that the German Chamber of Commerce in China (AHK) has just released its 2024/2025 survey report. The report showed that 60 percent of German enterprises in China believe China’s economy has deteriorated compared to last year. Only one-third expect conditions in their industry to improve in the coming year.
Among the German companies surveyed, 56 percent believe that weak demand in the Chinese market is their biggest business challenge, while 52 percent indicated price pressure as a major factor affecting their businesses. The biggest regulatory challenge facing respondents is “buying domestic products,” with 29 percent of the companies surveyed viewing this as a key issue. In the meantime, the trend of localization is more obvious, that is, the strategy of “Made in China, for China.” Around 40% of German companies said they now operate more independently from their global headquarters.
However, only 0.4 percent of the German companies surveyed have clear plans to leave China. AHK has about 2,100 members, of which 546 companies participated in the survey. AHK estimates there are about 5,000 German companies operating in China.
Source: DW Chinese, December 4, 2024
https://tinyurl.com/4ssjnant