The German Chamber of Commerce in China has recently published its latest report, “From China to Global: How German Companies Leverage the New Wave of Chinese Companies Going Abroad.” The report is based on interviews with 11 member companies conducted between April and June 2026, complemented by findings from the German Chamber’s Business Confidence Survey 2025/26.
The report examines how German companies in China are responding to the international expansion of Chinese companies, including the emerging models of cooperation, the motivations of both sides, and the strategic and geopolitical challenges involved. It takes a neutral perspective and describes a market trend shaped by macroeconomic pressures and changing competitive dynamics in China.
Key findings:
- The Going Global Trend is Entering a New Phase
Chinese companies are now increasingly expanding overseas. The current wave differs from earlier phases, with Chinese firms exporting brands, production capacity, and entire ecosystems. German companies in China now see this as their most relevant business opportunity.
- German Companies engage through Five Models
German companies in China engage with Chinese companies’ overseas expansion through five distinct models: supplying products or services to Chinese companies’ overseas operations, supporting Chinese companies to meet international standards, providing international experience to Chinese companies, jointly expanding into new markets with Chinese partners, and following Chinese companies into third countries. The most suitable approach depends on the company’s industry, its existing global footprint, and the nature of its relationship with Chinese companies.
- Both Sides have Strong Motivations for Engagement
German companies in China are driven by two reinforcing motives to partner with Chinese firms going global: replacing declining demand from traditional customers and/or remaining relevant in a shifting global market. In the meantime, Chinese companies benefit from German strengths in global footprint, brand credibility, and regulatory and market know-how.
- The Window of Opportunity is Narrowing
The complementarity between German and Chinese companies is not a permanent state. As Chinese firms rapidly acquire new capabilities, the competitive landscape is shifting, and the window of opportunity to partner with them on their global expansion is narrowing.
- Starting in China is Essential
According to the interviewed companies, engagement with Chinese companies going global needs to start in China. Strategic decisions are made at Chinese headquarters, and an increasing share of innovation and R&D now originates there. At the same time, the speed and intensity of competition, together with the completeness of China’s industrial supply chain, make it an important starting point for German companies to maintain and increase their global competitiveness.
- German Companies Act as Intermediaries
German companies in China are increasingly playing an intermediary role in the going global trend. Positioning themselves as bridges and investing long-term in relationship building are key strategies that German companies should consider when engaging in the going global of Chinese companies.
- Reverse Knowledge Flows are Accelerating
The going-global trend has accelerated reverse knowledge flows from China to Germany. The content of these flows includes processes, speed, and market intelligence, as well as the recognition that Chinese companies have become technology leaders in some sectors.
- Headquarters’ Response Time to Going Global Opportunities “Lags Behind”
While many German companies have granted their China operations greater autonomy in recent years to serve the local market, the new wave of “Going Global” cooperation requires an expanded mandate from headquarters to secure future business success. Headquarters’ support, however, often does not match the pace required. This structural mismatch is generating quantifiable losses, ranging from slower responses to market opportunities, delayed integration of China-based developed products into global portfolios, to missing opportunity windows for influencing industry standards.
- Geopolitics Add a New Layer of Complexity
Geopolitical dynamics are increasingly shaping the business environment for German companies operating in China and beyond. For German companies, this creates a new layer of complexity. For example, helping a Chinese client win a tender in Europe can mean having to navigate not only commercial competition, but also political and regulatory scrutiny - and, where necessary, resolve potential conflicts.
We would like to express our sincere gratitude to the 11 member companies that participated in the interviews and shared their valuable insights and experiences. Your contributions made this analysis possible and helped provide a practical perspective on how German companies in China can engage with the new wave of Chinese companies going global.