A majority of German businesses are facing growing competition from Chinese companies, with industrial firms particularly exposed, according to a survey released Thursday by the German Chambers of Commerce and Industry (DIHK).
The study, based on responses from 1,300 companies, found that 67% of surveyed firms reported increased competitive pressure from Chinese rivals. Among industrial enterprises, the share rose to 83%, underscoring the sector’s vulnerability to China’s expanding presence in global markets.
Volker Treier, DIHK’s head of foreign trade, noted that Chinese competitors are no longer relying solely on volume and pricing. "They are technologically strong, innovative and increasingly present internationally," he said, adding that competition with China has reached a new level.
Germany’s trade imbalance with China deepened further last year, with the deficit widening by about €22 billion to €89.3 billion ($103.61 billion). Imports from China rose 8.8%, while German exports to the country declined 9.7%, reflecting the shifting dynamics in bilateral trade.
Despite the challenges, most German firms are not retreating from their markets. Eighty-eight percent of companies surveyed said they have no plans to exit their business areas. Instead, many are pursuing strategies to adapt, with 60% focusing on product innovation, 50% aiming to reduce costs, and 39% seeking to expand into new markets. Nearly one in three companies indicated an interest in greater collaboration with Chinese partners.
The findings highlight the dual pressures facing German industry: competitive threats from Chinese firms and a structurally widening trade deficit, which together are reshaping the economic landscape for businesses operating between the two economies.
