Beijing/Guangzhou/Shanghai, April 28, 2021 – Today, The German Chamber of Commerce in China published the results of a flash survey on the 6th German-Chinese government consultations. The bilateral talks offer a unique opportunity to improve the economic framework for German companies in China. “German companies in China are optimistic about 2021, based on a continuous recovery of their business,” explains Clas Neumann, Chairperson of the German Chamber of Commerce in China | Shanghai. “However, complex regulatory challenges in the Chinese market and a difficult international political environment dampen the optimism.”
“The results from our member companies in China show which topics the German government should address when conferring with its Chinese counterparts. Not surprisingly: travel restrictions continue to rank first at 78%,” says Neumann. The restrictions on international travel are a burden on German and Chinese businesses in China. Planned investments – some of which have already been postponed several times – still cannot be realized. “China is putting the continuation of the fast-track procedure in prospect. This message raises great hopes for German businesses in China. We know of many examples of company foundations left unfinished, the slow build-up of production lines or the maintenance of important machines at Chinese companies being compromised," explains Neumann.
Another topic that half of the participating companies (49%) mentioned is the need for a more level playing field for German companies, against the backdrop of China’s “dual circulation concept”. “With regard to licensing processes, the survey shows that transparency of bidding requirements is less of an issue, rather than the lack of equal treatment with local competitors," said Neuman, commenting on the current survey results. Equal treatment is also a key issue of the EU-China Investment Agreement (CAI). Accordingly, the expectations from German companies on the topic are high - as the Chamber's Business Confidence Survey in February already showed.
The third and fourth topics to be addressed from the companies’ point of view are the deepening cooperation in environmental protection/carbon neutrality (34%) and Industry 4.0 (24%). This underlines the high importance of these topics for German businesses and the perceived opportunities in these areas.
The German Chamber of Commerce in China expects the bilateral consultations to be used to address challenges and identify solutions. The 6th German-Chinese government consultations are taking place at a time when it is more important than ever to advocate for a sustainable basis for bilateral relations.
Background
On April 28, 2021, the governments of Germany and China will meet virtually for the 6th German-Chinese government consultations. Germany and China craft an economic success story: For the fourth year in a row, China has been Germany's most important trading partner, with a trade volume of around EUR 212 billion. More than 5,000 German companies residing in China have contributed to the country's development by creating around 1.1 million jobs.
About the survey
In April 2021, a total of 320 member companies of the German Chamber of Commerce in China participated in a flash survey on the occasion of the 6th German-Chinese government consultations.
About the German Chamber of Commerce in China
The German Chamber of Commerce in China has currently more than 2,300 members in mainland China and is the official member organization for German companies in China. By providing up-to-date market information and practical advice, the German Chamber helps its members to succeed in China. It offers a platform for the Sino-German business community and represents its members' interests toward stakeholders, including government bodies and the public.
Contact for press inquiries:
Lisa Fischbach Olivia Helvadjian
fischbach.lisa@bj.china.ahk.de helvadjian.olivia@sh.china.ahk.de
Tel: +86-10-6539-6670 Tel: +86-21-3858-5037