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China is “crucial” for business success

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Foreign Minister Annalena Baerbock (Alliance 90/The Greens) arrives at Berlin-Brandenburg Airport (military section) before her departure to Riyadh. © Soeren Stache/dpa

The German economy is dependent on China, but the resulting dependencies are alarming the traffic light government. A recent letter to the Foreign Minister reveals the frustration.

Berlin – The German economy is in a tight spot: On the one hand, China is a competitor that is making German companies increasingly dependent. On the other hand, they need the country because it is where the greatest opportunities for growth lie. The traffic light government would prefer if German companies reduced their dependence on the Middle Kingdom. It views China and Chinese skilled workers with suspicion. Companies are now up in arms against this behavior.

Companies complain about visa requirements in a letter to Baerbock

300 German companies in China have complained in a letter to Foreign Minister Annalena Baerbock (Greens) about the slow process of issuing visas for Chinese employees. The qualification of Chinese employees in Germany and joint project development are crucial for the success of German companies, according to a letter to the news agency Reuters This letter from the Greater China Chamber of Foreign Trade and its Managing Director for Shanghai, Maximilian Butek, which was signed by the companies.

“That is why we are concerned that there are still difficulties in providing Chinese employees of German companies with visas for Germany in a timely manner.” The application times are too long and the procedure more complicated than before. However, the help of the Foreign Office is “of the utmost importance” for the success of German companies.

The Shanghai metropolitan area, where two thirds of German companies are based, is cited as an example. Visa processing time there is now around three months. The previously streamlined visa process has been abolished and should be reintroduced, demand the German companies. Now appointments are posted online at irregular times and are booked within a few minutes. The provider’s website is also difficult to access and often reports errors when making appointments.

China is essential for the success of German companies

“Success in China is highly crucial for the overall success of companies,” the letter emphasizes. This not only affects business success, but also the advancement of innovations. “This year in particular, our surveys show that German companies in China are under particular competitive pressure with local companies.” In order to withstand the competition, products and business models need to be adapted even more quickly to the Chinese market. This is why intensive exchange is needed between the parent companies in Germany and their branches in China.

According to the Federal Statistical Office, China was once again Germany’s most important trading partner in 2023, with an exchange of goods worth 254.5 billion euros. The traffic light government has warned companies against becoming too dependent on China and wants to promote investments in other countries. (wal/reuters)

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