Chinese and German companies are increasingly becoming close competitors - both in China itself and in global markets. This is the reality that German companies must prepare for. They strengthen their competitiveness through increased investment in their China business and cooperation with partners and customers. The sluggish development of the Chinese economy coupled with the emergence of local competitors has made the issue of unfair competition in China more pronounced. The German Chamber of Commerce in China has launched a survey among its member companies to establish the status quo of the competitiveness of German companies in China. The German Chamber is strongly advocating for fair competition conditions with the Chinese government. Especially against the background of increased entry of Chinese providers into the European market, a level playing field must be implemented.
Key findings:
- Two-thirds of the surveyed companies say they are affected by unfair competition.
- German companies consider themselves superior to their Chinese competitors in terms of product quality, technological leadership, and innovation strength.
- They rate their cost efficiency, time to market readiness, and innovation speed as weakest compared to Chinese competition.
- Competitive disadvantages are particularly seen in market access and access to networks (e.g., government, local authorities, access to public tenders, etc.).
- The heightened competition is expected to cause increased cost pressures, reduced profit margins, and lower market shares.