German companies face rising competition from China

A survey by the German Chamber of Commerce and Industry (DIHK) reveals that German companies are facing intensifying competitive pressure from Chinese manufacturers. Approximately two-thirds of all surveyed companies, and 80 percent of industrial enterprises, report feeling this pressure. DIHK Foreign Trade Chief Volker Treier noted that Chinese firms have become more cost-effective and, in certain sectors, have emerged as innovation leaders.

In response, most companies are focusing on product innovation, cost reductions, and the exploration of new markets rather than withdrawing from the Chinese market. In fact, nearly one-third of companies are expanding their cooperation with Chinese partners.

The survey highlights a growing demand for a more unified European approach in international trade. About 55 percent of companies support stronger EU measures in the trade conflict with China, even if such actions result in negative consequences for their own businesses. Companies are calling for fair competition and measures to reduce strategic dependencies on individual suppliers.