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German companies bullish on China

By Zhong Nan | China Daily Africa | Updated: 2017-11-24 08:56
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Those in the machinery sector are among the most confident about their prospects

German companies doing business in China are more optimistic than last year on their economic prospects in the country, according to a survey published by the German Chamber of Commerce in China on Nov 17.

Most of the companies that participated in the survey term the current business year as extremely successful, with those from the machinery and industrial equipment sectors being the most bullish, according to the chamber's Business Confidence Survey 2017, conducted between Aug 21 and Sept 29.

Lothar Herrmann, chairman of the German Chamber of Commerce-North China, says China's economic reforms have proved beneficial to several German companies. The chamber believes there is strong potential for more cooperation in various industries, particularly in high-tech manufacturing, digitalization, innovation and high-end consumer products.

"We welcome the Chinese government's statements with regard to further opening-up, strengthening of market forces, as well as promoting foreign investment," says Herrmann. "We are looking forward to more concrete reform measures."

The survey interviewed 423 companies on issues related to business outlook, investment climate and market conditions.

It found that nearly two-thirds of the German companies in China expect to achieve or exceed their business targets this year. About 75 percent of the companies expect their turnover to increase in 2018.

Despite improvements in the current year and positive expectations for 2018, German companies remained cautious on increasing investment and employment in the country. But China still ranked among the top three markets for most German companies.

The survey found that more than one-third of the German companies surveyed expected a positive effect on their future business from the China-led Belt and Road Initiative. About 30 percent of the German companies are active in or are considering engagements in projects related to the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

Alexandra Voss, a member of the chamber's all-China board, says the initiative presents opportunities for German companies, including in various infrastructure projects for suppliers in the machinery and mechanical engineering industry, and in technical fields, engineering and quality management services.

"Based on the total bilateral trade figure between China and Germany from January to August this year, we have reason to believe that bilateral trade volume will exceed 170 billion euros ($201 billion; 152 billion) this year from the level seen in 2016," says Michael Clauss, the German ambassador to China.

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Visitors check out Siemens medical equipment at an industry expo in Beijing. Provided to China Daily

(China Daily Africa Weekly 11/24/2017 page29)

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