German companies in China see slump in business confidence

German companies in China are more pessimistic than ever about their prospects due to the country’s economic problems and major hurdles for foreign operators.

According to the latest business confidence survey by the German Chamber of Commerce Abroad (AHK) in China, less than a third of companies surveyed expect positive developments in their sector in the coming year – a historic low.

Another 29% even expect a decline, reported the AHK branch representing the interests of German companies in China.

A total of around 5,000 German companies are active in the country, of which 2,100 are members of the organization.

“In general, we have to say that the mood is not good, especially in the short term,” said AHK official Maximilian Butek in Shanghai.

A certain number of companies have said they will stop investing for the time being, Butek said.

However, 92% of German companies plan to continue their operations in China, according to the survey conducted among 546 AHK members. Only 0.4% have concrete plans to leave.

The world’s second-largest economy is a crucial sales market for many German companies despite growing competitive pressure.

For 56% of the companies surveyed, however, weak demand in China is now the biggest problem, followed by price pressure, cited by 52%.

German companies in China are more pessimistic than ever about their prospects due to the country’s economic problems and major hurdles for foreign operators.

According to the latest business confidence survey by the German Chamber of Commerce Abroad (AHK) in China, less than a third of companies surveyed expect positive developments in their sector in the coming year – a historic low.

Another 29% even expect a decline, reported the AHK branch representing the interests of German companies in China.

A total of around 5,000 German companies are active in the country, of which 2,100 are members of the organization.

“In general, we have to say that the mood is not good, especially in the short term,” said AHK official Maximilian Butek in Shanghai.

A certain number of companies have said they will stop investing for the time being, Butek said.

However, 92% of German companies plan to continue their operations in China, according to the survey conducted among 546 AHK members. Only 0.4% have concrete plans to leave.

The world’s second-largest economy is a crucial sales market for many German companies despite growing competitive pressure.

For 56% of the companies surveyed, however, weak demand in China is now the biggest problem, followed by price pressure, cited by 52%.