German enterprises operating in the Chinese mainland are signaling a significant shift in sentiment, expressing renewed confidence in the region's economic trajectory and their own industry outlook. According to a recent flash survey conducted by the German Chamber of Commerce in China (AHK China), a growing number of firms are eyeing expanded operations and increased capital injection.
The survey reveals a notable upward trend in expectations. Approximately 37% of surveyed companies predict that the economy of the Chinese mainland will improve over the next six months—a substantial increase of 22 percentage points compared to the previous year. In a stark contrast to 2025, when 56% of respondents anticipated a decline, only 17% now expect the economic situation to deteriorate.
This optimism is translating into concrete business strategies. Among the 216 German companies polled, 61% intend to increase their investments in the Chinese mainland within the next two years. This figure, up from 53% last year, marks the highest level of investment intent recorded since 2023, highlighting the enduring appeal of the market for German industry.
Performance indicators for the current year are also looking up. Expectations regarding turnover, profits, investment, and employment have all strengthened. Specifically, 34% of firms reported improving conditions for 2026, a significant jump from the 19% reported in 2025.
However, the global landscape continues to present hurdles. Three-quarters of the respondents noted that tensions in the Middle East have negatively impacted their business operations, primarily manifesting as increased logistics costs and higher supply prices. Despite these external pressures, the overall trend among German firms remains decisively positive as they strengthen their footprint in the Chinese mainland.
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Survey: German firms upbeat on China economy, eyeing more investment
cgtn.com
