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5,000
German companies are operating in China
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1.1 million
jobs in China are directly supported by German companies
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246 bn. EUR
trade volume between China and Germany in 2024
Towards China
Level playing field
Status quo
Challenging market conditions, fierce competition, pricing pressures, and sluggish economic growth have heightened concerns regarding the unequal treatment and unfair competition faced by German companies.
Our position
German businesses welcome competition. However, German companies in China can only fully unfold their high-quality, innovative, and green potential in a fair and healthy business environment. We therefore advocate for creating a true level playing field that allows German and Chinese companies to act on equal footing.
Equal treatment
Status quo
The "Buy China" trend has emerged as the primary regulatory and market challenge for German companies operating in China. Moreover, preferential treatment of local firms is another significant challenge they face.
Our position
We advocate for implementing equal treatment policies, especially in public procurement and to ensure a zero tolerance to unequal treatment cases of German companies in China by engaging Chinese governments on all levels.
Legal certainty & transparency
Status quo
Legal uncertainty has been a major problem for German companies in China for a long time, for example through vague clauses in various laws. Especially how policies are implemented and executed remains a challenge.
Our position
We advocate for establishing a clear wording in Chinese policies with concrete definitions, communicating actual requirements more clearly and giving guidance how companies can fulfill them.
Intellectual property protection
Status quo
Two-thirds of German companies in China report intellectual property challenges, especially increasing counterfeiting and fake products, leakage of company and business secrets as well as long and challenging processes when prosecuting IP infringements in court.
Our position
We observe that wrongful accusations of infringement against foreign companies are on the rise. To address all issues related to IP protection, we advocate for improved enforcement of IP rights, stronger measures against infringers and attackers, as well as the removal of barriers that hinder the prosecution of infringement cases in court in China.
Cybersecurity transparency
Status quo
Chinese cyber and data security regulations have been a longstanding concern for German companies. Especially compliance with cross-border data transfer regulations is challenging.
Our position
To enhance transparency and certainty in cross-border data transfers, we advocate for a clear definition of what constitutes "important data" across various industries, as well as increased dialogue with Chinese authorities on central and local levels.
Innovation barriers
Status quo
In response to increasing market competition from local companies, German companies in China are ramping up their localization efforts of research & development and innovation activities. However, challenges such as unequal access to Chinese innovation programs are barriers for innovation today.
Our position
We advocate for easier access to local financing resources and local innovation programs in China for German companies. This will help them to better localize and expand their research & development and innovation activities in China.
Unofficial market access barriers
Status quo
While there are initiatives aimed at opening up markets in China, unofficial barriers continue to persist alongside the formal regulations, such as the verbal rejection of product licenses, non-publicly available documents related to local protectionism, or challenges in obtaining licenses.
Our position
We urge Chinese authorities to ensure the effective enforcement of market entry policies at the local level and to provide training to local officials on this matter.
Implementation of policies
Status quo
German companies expect greater impact from most policy initiatives in China. While companies appreciate the efforts on decarbonization and green transitions, they note less efforts in relaxing cross-border data transfer regulations, implementing centralized regulations locally, strengthening the private sector, and ensuring equal access to public procurement.
Our position
We encourage the Chinese government not only to improve the policy frameworks in policy areas, but to more deeply implement them on the ground and to support local level authorities in this endeavor.
Towards Germany
Nuanced understanding of China in Germany
Status quo
German companies in China find the deteriorating perceptions of China in Germany/EU particularly challenging for their business. Especially in times characterized by growing geopolitical and trade tensions, a more informed picture and more profound knowledge of China has become increasingly vital.
Our position
Fostering a more nuanced understanding of China in Germany and investing more in developing China-related expertise across economic, political, and social domains would be helpful for German companies doing business in China.
Balanced bilateral relationship
Status quo
German companies in China would appreciate a stronger emphasis from the German government on China as a partner. Despite increasing systemic differences, China remains a crucial global growth market and innovation driver for the coming years.
Our position
German companies’ engagement in China is needed to strengthen their innovative power and global competitiveness. A more balanced relationship with China, focusing on China as a partner, is needed. We recommend establishing more regular formats focusing on economic exchange to support German companies on the ground.
Contact
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Dr. Constanze Wang
Head of Government Affairs & Advocacy
+86-21-3858 5010 wang.constanze@china.ahk.de -
Carina Mingle
Head of Media Relations & Corporate Communications
+86-10-6539 6670 mingle.carina@china.ahk.de