Reported 8 months ago
A report by the German Chambers of Commerce Abroad (AHK) revealed that German companies in China are mainly facing challenges of declining prices and weak demand. With 61% of surveyed companies highlighting 'price pressure' as their biggest issue in China, concerns over soft demand due to China's economic slowdown and geopolitical tensions were also prominent. The survey included 186 German companies, where 21% were automotive manufacturers impacted by China's booming electric vehicle market and intense price competition. Overcapacity was noted as a significant concern affecting business operations, with 75% of the companies stating their sectors were facing excess capacity issues, despite Chinese government denial of overproduction accusations. German companies expressed hopes for fair competition conditions and transparent legal environments in China, with ongoing negotiations over EU tariffs on Chinese electric vehicles. Despite challenges, more than one-third of surveyed companies remained optimistic about potential economic improvements in the future.
Source: YAHOO