Competition is particularly changing. Chinese companies have caught upcaught up in terms of technology and product quality and no longer just compete with German companies in China but also in Germany, the EU, and other third markets. The extent of this development is shown by the current DIHK Special Survey "German Economy in Competition with China": two-thirds of the companies surveyed report growing Chinese competition, and in the industry sector, this is as much as 83 per cent.

Businesses call for fair competition rather than economic isolation

Closely intertwined despite Growing Challenges

At the same time, China remains an important part of the value chain for many companies. They produce locally, source intermediate goods, or rely on Chinese raw materials and supply chains. A general withdrawal is therefore not an option for the vast majority. Instead, companies are diversifying their supply chains and sales markets, investing in innovations, or adapting their local production.

Dependencies are particularly visible with critical raw materials. China's strong position in rare earths and other strategically important materials highlights the need for additional sources of supply, raw material partnerships, and more efficient recycling processes within Germany and Europe.

Fair Competition Requires a Strong Business Location

The growing competitive pressure also shifts the focus to the conditions in Germany and Europe. High costs, bureaucracy, and regulatory burdens make it even more difficult for companies to keep up internationally. As a result, responding to China cannot depend solely on trade protection measures but also on the urgently needed reforms.

Europe must address evident competitive distortions and simultaneously strengthen its own competitiveness. This includesbetter framework conditions for business as well as new trade and raw material partnerships and the diversification of supply chains.

Economic securityis not achieved through isolation but through multiple options. How companies are experiencing change and which economic policy responses the DIHK considers necessaryfrom the DIHK's perspective are shown through the analyses, surveys, and positions in this dossier.