German firms in China more upbeat about economy despite Iran war, trade headwinds: survey
On Tuesday, the German Chamber of Commerce in China published a survey revealing that 37% of participants believe China's economy will improve in the next six months, an increase of 22 percentage points from the previous year. In contrast, only 17% foresee a downturn, a significant drop from 56% in 2025. This survey, conducted between April 15 and 21 among 216 member companies, reflects a shift in business sentiment. Oliver Oehms, the chamber's executive director in North China, linked this positive outlook to a base effect, considering the 2025 survey was taken shortly after escalating trade tensions. Additionally, 61% of firms plan to invest in China over the next two years, the highest since 2023, despite 75% citing the Iran war's impact on operations.
Key facts
- 37% of German firms in China expect economic improvement over next six months, up 22 percentage points from last year.
- Only 17% anticipate deterioration, down from 56% in 2025.
- Survey polled 216 member companies between April 15 and 21.
- 34% of firms reported improving industry conditions in 2026, up from 19%.
- 42% expect turnover to rise by year-end, up from 29%.
- 29% forecast higher profits, up 11 percentage points.
- 61% plan to expand in China over next two years, highest since 2023.
- 75% affected by Iran war; 69% affected by US-China trade tensions.
Entities
Institutions
- German Chamber of Commerce in China
Locations
- China
- North China