German Firms Expect Chinese Rivals to Spearhead Innovation Within Five Years, Survey Shows(Yicai) Jan. 25 -- More than half of German companies in China believe that their Chinese competitors already lead or will lead innovation in their respective fields within the next five years, according to the findings of a survey by the German Chamber of Commerce.
Chinese businesses are viewed as leaders in innovation by 64 percent of the respondents in the consumer goods and services sector and 55 percent of those in plastic and metal products, the chamber’s Business Confidence Survey 2023/24 report showed yesterday. Eleven percent said Chinese firms are at the forefront of the auto sector, with 58 percent expecting them to be in the next five years.
Forty percent of the respondents see Chinese electric vehicle makers as pioneers, while the ratio is 34 percent in the artificial intelligence arena and 31 percent in the e-commerce domain.
Despite a tougher global and market environment, 91 percent of German companies have no plans to withdraw from China, with less than 3 percent intending to partly or entirely move out and only around 7 percent considering to leave.
Seventy-eight percent of the respondents predicted consistent growth in their industry during the coming five years, with 54 percent planning to boost investment and 79 percent saying that it is necessary to remain competitive in China.
Businesses in the auto sector have the strongest investment intentions in China, with 63 percent planning to increase it over the next two years. That is likely due to the country's leading position in the EV industry, with many patents and registrations, according to the report. The large market potential and innovation spillover likely contribute to a significant proportion of investment in the sector, it added.
The Business Confidence Survey, conducted from Sept. 5 to Oct. 6, was sent out to 566 corporate members of the German Chamber of Commerce in China, with 33 percent of them in the machinery and industrial equipment sectors and 21 percent in the auto industry. The first such survey was in 2007.
Editor: Martin Kadiev
