ECONOMY

Fierce Local Competition Is Holding Back German Investment in China

Published: Dec. 3, 2025 7:29 p.m. GMT+8

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A press briefing for the German Chamber of Commerce in China’s latest annual business confidence survey.

Intensifying domestic competition has become the biggest barrier preventing German companies from expanding investment in China, with 58% of firms citing it as the main constraint, according to the German Chamber of Commerce in China’s latest annual business confidence survey.

Confidence has recovered slightly from 2024’s historic lows, but weakening demand, price pressures and policies favoring domestic products weigh on corporate operations, the chamber said.

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Explore the story in 30 seconds

58% of German firms cite rising domestic competition as the top barrier to expanding investment in China, per a recent survey.
Business confidence has risen slightly, with 17% expecting economic improvement and over half planning to boost China investments in two years.
Geopolitical concerns affect 22% of companies, but less than 1% have started to exit the Chinese market.

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