Majority of German companies in China focused on expansion: survey

Around 56 percent of German companies in China are considering more engagement with domestic partners, with the primary motivations being business expansion and the need to adapt to "China Speed", according to the results of a survey released by the German Chamber of Commerce in China on Tuesday.

According to the chamber's 2025-2026 business confidence survey, around 75 percent of German companies said that China–European Union and China-Germany relations influence their businesses in China, with 34 percent reporting the relations provide a solid foundation for operations.

Meanwhile, 64 percent of those surveyed identified "improving the China picture" in Germany as their leading expectation of the German government.

The survey, which elicited responses from 627 of the chamber's member companies, was conducted between September 1 and October 6. The chamber has more than 2,000 members in China, including Bayer, Covestro, DHL, Mercedes-Benz and Siemens.

"Sophisticated partnerships with Chinese companies, together with a third wave of localization that focuses on research and development and its speed of industrialization, have become key response mechanisms for German companies in China to strengthen their market position and drive not only local but also global top innovations," Martin Hofmann, the chamber's chairperson in North China, said.

When German companies rate business opportunities, the global expansion of Chinese firms ranks first, with 36 percent of firms citing it as the main opportunity - up 4.7 percentage points from 2024, according to the study.

In addition, about 68 percent of participants are already engaged with Chinese companies abroad, with 44 percent doing so mainly by providing products and services.