Number of German Firms Leaving or Considering Leaving China Doubles, Survey Shows

The proportion of German companies that have either left China or are planning to leave China has more than doubled to 9% over the last four years, based on a survey from the German Chamber of Commerce in China.

According to Reuters, 2% of the companies with operations in China surveyed said that they were selling off their business operations there, while another 7% said they were considering a sell-off. In 2020, just 4% of German firms were exiting or were planning to exit China. The survey also showed that 44% of German firms have taken steps to address risks linked to maintaining operations in China.

“Last year was a reality check for German companies operating in China,” said Ulf Reinhardt, chairman of the German Chamber of Commerce South and South West China.

German firms in general have a gloomy view of the short-term prospects for the world's second-largest economy, indicated by 86% of those surveyed saying the Chinese economy is on a downward trajectory. However, most of the respondents said that they believed this trend would only be temporary, predicting an economic bounce-back over the next one to three years.

A majority of German firms, however, are not dissuaded by geopolitical tensions or economic trouble in China. Fifty-four percent of survey participants said they are planning to increase their investments in order to remain competitive in the region.

A total of 556 German firms were surveyed between September 5, 2023, and October 6, 2023, for the German Chamber of Commerce report.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://www.supplychainbrain.com/articles/38925-more-german-firms-leaving-or-planning-to-leave-china-survey-shows