German firms in China count cost of rising US-China trade tensions
While many are adopting a wait-and-see approach, 38% are stepping up localisation efforts in China
German companies in China are being affected by rising trade tensions between Washington and Beijing, a survey by the German Chamber of Commerce in China has found.
The flash survey of 143 member companies, conducted between April 14 and 17, found that 86 per cent of respondents had been affected by the latest round of tariff increases, with the proportion rising to 93 per cent in the automotive sector.
Among those surveyed, 9 per cent said they had been “very strongly” affected by Chinese trade measures, while 8 per cent said the same about American ones.
The proportion that said US tariffs had a direct impact on their operations than other trade instruments – 36 per cent – was the same as those most affected by Chinese tariffs.
“It is concerning that the vast majority of German companies in China are affected by the escalated trade conflict,” said Maximilian Butek, executive director and board member of the German Chamber of Commerce in East China.
“We expect that German companies’ localisation efforts in China will gain even more momentum now.”
Clearly, the trade conflict is a game with no winners