German Chamber of Commerce: Confidence in German enterprises in China is rising, but they are caught in a "sandwich" position under China-U.S. regulation

【Caixin】 In the European Union’s overall investment in China, Germany’s investment scale typically accounts for about one-third; an increasing number of German companies are adopting localization strategies and putting down roots in the Chinese market. However, in recent years, uncertainties in China–U.S. and China–Europe relations have been rising, along with factors such as the Iran war—what new challenges do German companies doing business in China face? How do they view prospects for development in China?

The China-Germany Chamber of Commerce conducted a week-long flash survey of more than 200 member companies in mid-April and released the survey results on May 12. The results show that among German companies in China, expectations for the Chinese economy are more optimistic: 37% of respondents expect the Chinese economy to improve over the next six months, a significant increase of 22 percentage points compared with the survey results from the same period in 2025. Meanwhile, 42% and 29% of companies expect their revenues and profits to grow. The number of companies planning to increase investment in China has also risen noticeably.