Business Confidence Survey 2025/26

Beijing, December 2, 2025: Today, the German Chamber of Commerce in China released its Business Confidence Survey Report 2025/26, indicating a slight uptick in economic and industry sentiment. Challenges such as price pressure and the “Buy China” trend intensify even more while Chinese companies are increasingly viewed as innovation leaders. “2025 brought challenges on several levels - from escalating global trade to tougher competition in the Chinese market driven by eroding prices and the accelerating speed of innovation. German companies in China had to adapt to an even more difficult market environment across all industries,” says Dr. Martin Hofmann, Chairperson of the German Chamber of Commerce in China - North China.  

The survey shows that 56% of German companies are considering more engagement with Chinese partners. The aim is to leverage knowledge and expand business in China. Dr. Martin Hofmann adds: “Sophisticated partnerships with Chinese companies, together with a third wave of localization that focuses on R&D 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.” 

Key Findings: 

• Slight Uptick in Industry Development: For 2025, 19% of respondents expect an improvement in their industry - up 4 percentage points (p.p.) from the record low in 2024. For 2026, no change is expected. The sentiment toward China’s economic development improves marginally: With 3 p.p. up compared to 2024, 17% foresee improvement in 2025, while 17 p.p. less (43%) expect a deterioration.  
• Price Pressure Now Leading Business Challenge: Cited by 60% of participants - a significant increase of 7.5 p.p. from 2024 - price pressure now ranks as the leading macroeconomic challenge, followed by weak demand in China at 52%. Meanwhile, the “Buy China” trend becomes an even greater regulatory concern, listed by 32% - up 3.4 p.p. from 2024. 
• Chinese Partners Become a Cornerstone of Companies’ Strategy: The likelihood of Chinese companies becoming innovation leaders has reached a new high, with 60% of participants expecting this. At the same time, a notable 56% of surveyed companies plan deeper engagement with Chinese partners. The main motivations are scaling up the China business (57%) and adapting to “China Speed” (46%). Yet, 42% say finding a suitable partner is the main challenge.  
• Rising Engagement in Chinese Companies’ Going Abroad: When German companies rate business opportunities, the going abroad of Chinese firms ranks first, with 36% of firms citing it as the main opportunity - up 4.7 p.p. from 2024. Additionally, a remarkable two thirds (68%) of participants are already engaged with Chinese companies going abroad, mainly by providing products and services (44%). 
• Knowledge Flow is a Two-Way Street: 55% of participants say their headquarters transfer knowledge and expertise to Chinese subsidiaries, while a notable 33% report a reverse flow to headquarters. Innovative solutions (40%) dominate transfers to headquarters in Germany, while technical expertise (63%) leads the exchange toward Chinese subsidiaries. 
• Good Relations Between China and Germany Matter: An outstanding number of respondents (75%) say that China–EU/Germany relations influence their China business, with 34% reporting the relations provide a good foundation for operations. Meanwhile, improving the China picture in Germany is the leading expectation (64%) toward the German government. 

About the Business Confidence Survey 2025/26 

Between September 1 and October 11, 2025, a total of 627 member companies of the German Chamber of Commerce in China participated in the survey, making this one of the most representative samples of German business sentiment in the country. The Business Confidence Survey, first launched in 2007, has become a key instrument for assessing the sentiment of German companies operating in China and serves as the primary tool for our advocacy efforts.