German Companies Believe in China

Despite difficult market access and lack of legal certainty, German businesses are optimistic about the growth of China market. According to a survey by the German Chamber of Commerce in China among its members, according to the survey , willingness to invest is 43 percent more than last year.

“This shows confidence in Chinese economy,” chamber President Ulrich Walker said at a press conference in Beijing. Half the company expects growth in its market segment of eleven or more percent. The biggest problem today is, however, finding qualified personnel. 90 percent of the surveyed companies had trouble in doing so. Almost a similar percentage of the surveyed companies complained about rising wage costs. 75 percent are struggling to keep good staff too.

More than half also complained bureaucratic hurdles, legal uncertainties, corruption and local protectionism. Also, competition with Chinese companies is intensifying. For companies still running the business: More than a third of businesses reported in the first half of 2011, an increase in sales and profits by more than ten percent. Another 17 percent increased their profits by more than 25 percent.