02.02.2021 – 09:00
KPMG AG Wirtschaftsprüfungsgesellschaft & German Chamber of Commerce in China
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Beijing/Guangzhou/Shanghai (ots)
- Hohe Erwartungen an das EU-China Investitionsabkommen: Verbesserter Marktzugang für 40 Prozent der Befragten sowie die Gleichbehandlung ausländischer Unternehmen auf dem chinesischen Markt für 39 Prozent der Betriebe Schlüsselthemen für CAI - Kontinuierliche Erholung des China-Geschäfts deutscher Unternehmen 77 Prozent der deutschen Unternehmen erwarten, dass sich der Markt in China deutlich positiver entwickelt als in anderen Volkswirtschaften - China bleibt wichtiger Investitionsstandort deutscher Unternehmen: Umsatzerwartungen und Gewinnprognosen für 2021 mehrheitlich optimistisch; 96 Prozent der Befragten haben keinerlei Pläne China zu verlassen; 72 Prozent planen weitere Investitionen - Entkopplungstendenzen beschleunigen Lokalisierungstrend: Sorgen vor den Risiken steigender Kosten durch verschiedene Standardanforderungen (37 Prozent) und vor einem langfristigen Geschäftsrückgang (35 Prozent); Deutsche Unternehmen in China reagieren mit zunehmender Lokalisierung von Forschung und Entwicklung (43 Prozent) sowie Beschaffung (34 Prozent) und der Anpassung von Schlüsseltechnologien an verschiedene Standards (33 Prozent)
The German Chamber of Commerce in China in cooperation with KPMG AG Wirtschaftsprüfungsgesellschaft today presented the results of the annual business climate survey “Business Confidence Survey”. The results show that German companies in China are currently operating in an environment that is characterized by optimism for the coming year and a strong commitment to the market, although complex regulatory challenges remain and competition with Chinese companies is increasing.
CAI: The expectations of the German economy in China are high
The expectations of the EU-China Investment Agreement (CAI), which has yet to be adopted, are high: The companies surveyed by the German Chamber of Commerce in China and KPMG Germany stated that market access (40 percent) and equal treatment of all market participants in China (39 percent) are key issues for the agreement. However, the study results also show that there are definitely positive evaluations of formal market access. Compared to the previous year, fewer companies state that they fail at this first hurdle (30 percent). “The CAI will make the market opening steps already initiated by China irreversible for European companies,” says Dr. Stephan Wöllenstein, President of the German Chamber of Commerce in Northern China. On the other hand, the challenges remain clearer at the indirect level. If you add up the regulatory challenges of German companies in China, administrative and bureaucratic hurdles are among the greatest obstacles: Customs regulations and procedures, obtaining the necessary licenses, the requirements of the Cyber Security Act, the Corporate Social Credit System or even capital transfers and cross-border payments . “The agreed institutional framework of the CAI also creates a permanent communication channel in order to check compliance with the commitments and to address existing challenges facing our companies. German companies expect more legal certainty and better competitive conditions in the Chinese market from the agreements in the CAI”, explains Dr. Wöllenstein.
Continuous recovery of the China business of German companies
Despite Covid-related slump in sales in the first half of 2020, 39 percent of German companies in China managed to increase sales in 2020 and 42 percent to increase profits, according to the survey. In addition, around a further quarter of the German companies surveyed in China managed to achieve sales and results roughly at the level of the previous year in 2020. “China is the only major economy that grew in 2020 – albeit only by around 2 percent. German companies have also benefited from this, the declines in the EU and the USA due to business picking up again in China in the second half of the year could partially compensate “, commented Andreas Glunz, Head of International Business at KPMG AG Wirtschaftsprüfungsgesellschaft in Germany.
China remains an important investment location
Optimism dominates for 2021: 77 percent of those surveyed assume that their industry will develop better in China than in other markets. Therefore, 72 percent of respondents expect their company in China to increase sales and 56 percent to increase profits in 2021. This is also reflected in a strong commitment to the Chinese market: Almost all of the companies surveyed (96 percent) stated that they had no plans to Leaving China and 72 percent are planning further investments, for example in production facilities (44 percent) and machines (34 percent) and in research and development (32 percent) According to Andreas Glunz “In many key industries in China, the course is being set for future developments. A local presence is important in order to generate sales in the Chinese market, but also to enter into local partnerships or to closely monitor tomorrow’s competitors in their home market. Great The German companies surveyed see business opportunities in China in particular in innovative technologies (58 percent) and digital solutions (51 percent). ”
Decoupling tendencies accelerate localization trend
The growing tensions between the USA and China created additional uncertainties for German companies in China in the 2020 pandemic. In a decoupling scenario, the German economy in China is particularly concerned about the risks of rising costs due to various standard requirements in the markets (37 percent) and a long-term decline in business (35 percent). In response, companies are increasingly localizing research and development (43 percent) and procurement (34 percent) and adapting key technologies to various standards (33 percent). “The economic effects of the pandemic and decoupling scenarios have intensified the trend towards localization,” comments on this Dr. Stephan Wöllenstein.
About the study
In October and November 2020, a total of 535 member companies of the German Chamber of Commerce in China took part in the annual business climate survey. You can find more information on the current results and results from previous surveys here: https://china.ahk.de/market-info/economic-data-surveys/business-confidence-survey.
Via the German Chamber of Commerce in China
With more than 2,300 companies, the German Chamber of Commerce in China is the official membership organization of German companies in China. With current market information and practice-oriented business reports, it helps its members in China to run their business successfully. The chamber offers the Sino-German business community a platform and represents the interests of its members towards stakeholders such as politics and the public.
About KPMG
KPMG is an organization of independent member companies with around 220,000 employees in 147 countries. KPMG AG Wirtschaftsprüfungsgesellschaft in Germany is one of the leading auditing and consulting firms and has around 12,600 employees at 26 locations.
Press contact:
Lisa Fischbach
fischbach.lisa@bj.china.ahk.de
Tel: +86-10-6539-6670
Olivia Helvadjian
helvadjian.olivia@sh.china.ahk.de
Tel: +86-21-3858-5037
Marita Reuter
[email protected]
Tel: +49-30-2068-1118
Original content by: KPMG AG Wirtschaftsprüfungsgesellschaft & German Chamber of Commerce in China, transmitted by news aktuell
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