Stung by Trump’s policies, German multinationals cautiously pivot towards China
German firms are keen to invest more in China as they shy away from the US, but they still face issues in the Chinese market, business group says
German companies are turning towards investments in China as they lose confidence in the United States over President Donald Trump’s policies, but they still see obstacles in the world’s second-largest economy, according to an executive at a German chamber of commerce.
Merz should offer a message of optimism tinged with frustration that Chinese officials had not solved old issues such as intellectual property rights protection, he added.
“Everyone sees the technological advances of China, the great potential, but especially the smaller companies shy away from the complexity of and the tough competition in the Chinese market,” Oehms said.
A survey by the German Chamber of Commerce in China – a nationwide group that represents German firms based across the Asian country, including northern China – in the fourth quarter of last year found that 56 per cent of respondents were considering greater engagement with Chinese partners. Some 630 of the countrywide chamber’s 2,000 member companies took part in the survey.
“It’s difficult to compare the relatively stable and predictable trade relations with China with these erratic ups and downs that are currently characterising relations with the US,” he said.
German direct investment in China surpassed €7 billion (US$8.25 billion) between January and November last year, up 55.5 per cent over the same period in 2024, according to data compiled by the IW German Economic Institute. Major German investors in China include carmakers such as BMW and Volkswagen, as well as machinery and mechanical engineering firms.