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German firms see narrowing window to partner with Chinese global expansion
A German Chamber of Commerce in China survey of 627 members found internalisation of Chinese firms became the top business opportunity for German companies, cited by 36.0% of respondents.
German companies operating in China increasingly see opportunities to work with Chinese businesses as those firms expand abroad, but the room to partner is shrinking, according to a report published by the German Chamber of Commerce in China.
The chamber’s findings point to internalisation of Chinese companies as the most frequently cited opportunity for German firms in China, with 36.0% of 627 survey respondents selecting it, up from 20.0% in 2022. Nearly half of surveyed German businesses supply products or services to Chinese companies operating abroad, while a quarter help them meet international standards.
The report cautioned that complementarity is not permanent. As Chinese firms rapidly build capabilities in areas German partners were previously expected to provide, the competitive landscape is changing and the window to partner on global expansion is narrowing.
Interviews with 11 executives conducted between April and June this year highlighted that Chinese firms are strengthening brand credibility, global presence, and know-how on regulatory requirements and standards. One automotive joint venture executive said some Chinese standards have already surpassed German benchmarks in certain technology segments, even though the Chinese entity still lacks expertise to manage intellectual property internationally, the report said.