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German firms upbeat about outlook for China despite US decoupling fears, survey finds
- Some 96 per cent of companies polled remained committed to the market amid post-coronavirus recovery and EU-China investment treaty
- Most respondents expected a more coherent approach from Washington this year but there was ‘no illusion for a reset of US-China relations’
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German companies have shown “evident” optimism about the outlook in China this year and most remain committed to the market despite concerns over economic decoupling from the US, according to the latest business confidence survey.
Their optimism was based on the country’s post-coronavirus recovery and the prospect of a landmark investment treaty being agreed between Beijing and Brussels when the poll was conducted in October and November, said a report released by the German Chamber of Commerce in China on Tuesday.
Although business was hit by the pandemic in the first half of 2020, more than 40 per cent of the more than 500 German firms polled said their profits went up in China last year. For a quarter of the companies, profits in China remained at the same level in 2020 as the previous year.
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Those results partially compensated for declines in their European and US operations, and more than 70 per cent of respondents expected their China operations to outperform other regions this year.
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China’s economy accelerated at end of 2020, but virus-hit annual growth lowest in 45 years
China’s economy accelerated at end of 2020, but virus-hit annual growth lowest in 45 years
“The Chinese market is of vital importance for the German economy. This is particularly true in times of the coronavirus-related weakness in world trade and the economy,” the chamber of commerce said in the report.
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