German firms keen on expanding in China

About 56 percent of German companies are considering more engagement with Chinese partners, with the primary motivations being business expansion in China and the need to adapt to "China Speed", the German Chamber of Commerce in China said in a survey released early this week.

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 for the German government.

The study was conducted between Sept 1 and Oct 6, with responses from 627 member companies of the chamber, including Bayer, Covestro, DHL, Mercedes-Benz and Siemens. The chamber has more than 2,000 members.

"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," said Martin Hofmann, chairperson of the German Chamber of Commerce in China (North China).

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, said the study.

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

Wan Zhe, a professor specializing in regional economic development at Beijing Normal University, said that many countries' surging demand for infrastructure upgrades — from modern manufacturing facilities to digital infrastructure and green mobility projects — will create opportunities for both German and Chinese banks, project design firms and contractors, as well as material and equipment manufacturers.

"China's proposal to explore third-party market cooperation can bring benefits to both Western nations and developing countries participating in the Belt and Road Initiative, without causing a clash of interests," she said.

Zeiss Group, a German manufacturer of optical systems and optoelectronics, will expand its presence in the Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area during China's 15th Five-Year Plan (2026-30) period.

"Beyond advancing localized R&D and manufacturing for premium products, we will broaden collaboration across the industrial chain to better serve customers in China and overseas," said Martin Fischer, president and CEO of Zeiss China.

German specialty materials manufacturer Schott AG also plans to invest more than 60 million yuan ($8.4 million) in Suzhou, Jiangsu province, in the coming months.

Upon full completion and ramp-up, the project aims to generate an annual output value of more than 1 billion yuan in China by 2030, covering new manufacturing capacity and innovation, said Salvatore Ruggiero, Schott's vice-president for marketing and communication.

Describing the investment plan as both "strategic" and "inevitable", Ruggiero said the decision is fueled by China's vast market size, strong innovation momentum, rapid emergence of new industries and growing potential for exports.

Currently, about 90 percent of Schott's products made in the country are sold domestically, but the new investment will enable exports to Southeast Asia, South Korea and Japan.

Zheng Chunrong, deputy secretary-general of the Chinese Association for European Studies in Beijing, said that a stable framework of China-EU and China-Germany ties will help companies from both sides mitigate protectionist pressures, cultivate new growth drivers and deepen cooperation in emerging sectors, reinforcing the resilience and competitiveness of bilateral supply chains.

Thanks to their complementary industrial structure, China-Germany trade grew by 4.4 percent year-on-year to 1.24 trillion yuan in the first 10 months of 2025, data from China's General Administration of Customs showed.