German companies are experiencing intensified competitive pressure from Chinese businesses, according to a study released Thursday by the German Chambers of Commerce and Industry. The survey of 1,300 firms found that two-thirds reported increased rivalry from Chinese competitors, with 83% of industrial firms citing similar challenges.
Volker Treier, head of foreign trade at the German Chambers of Commerce and Industry, noted that the nature of competition has evolved. 'Chinese companies are no longer competing only on volume and price. They are technologically strong, innovative and increasingly present internationally,' he stated.
Germany's trade deficit with China expanded by approximately €22 billion last year, reaching €89.3 billion ($103.61 billion). The imbalance was driven by an 8.8% rise in imports from China and a 9.7% decline in German exports to the country. Despite these pressures, 88% of surveyed firms do not plan to withdraw from their business areas.
To counter competitive challenges, 60% of companies intend to focus on product innovation, while 50% aim to reduce costs. Nearly 30% of firms seek greater cooperation with Chinese partners, and 39% plan to expand into new markets.
