Competition from Chinese providers has become a significant challenge for German companies, affecting both the domestic and international market. This survey delves into how German enterprises are addressing these emerging trends.
The German economy needs to adapt to a new competitive reality. Chinese manufacturers no longer compete solely on price; they have made huge strides in quality and technology. Nevertheless, German companies aren't burying their heads in the sand—they are actively seeking their own answers.
The German Chamber of Commerce and Industry (DIHK) surveyed about 1,300 companies across sectors of industry, trade, and services during July and August 2026 to gather insights on this situation and their strategies.
Key Findings at a Glance
- Two thirds of companies increasingly feel competition from Chinese competitors
35 percent of businesses rate the competitive pressure as strong or very strong. The industry and companies engaged in China are particularly affected. - Competitive pressure is more strongly perceived in the EU internal market than in other markets.
Industrial companies are primarily under pressure in the EU internal market, while trading companies are especially affected within their domestic markets. Companies with investments or locations in the People's Republic are experiencing the highest competition in the Chinese domestic market. - Innovation is the most important response to increasing competition
Withdrawing from contested business fields is not an option for 88 percent of businesses. Instead, 60 percent of companies focus on product innovation, 50 percent on cost reduction, 39 percent are intensifying their search for new sales markets to counteract increasing competition from China, and 31 percent cooperate with Chinese partners. - Companies demand above all a united European approach
67 percent of respondents call for a united EU stance towards China, 60 percent believe the EU should reduce strategic dependencies, 49 percent want to exclude Chinese companies from critical infrastructure, and 36 percent advocate for stricter regulations within the EU internal market. - Counteracting market distortions with stronger EU measures
55 percent of companies approve or somewhat approve stronger trade policy actions towards China – even if they themselves would suffer negative consequences. 37 percent rather or completely reject this.
Broad economic impact
Two-thirds of respondents reported growing competition from Chinese competitors. The impact is felt most in the industrial sector, where 83% of businesses report increased competitive pressure; 50% describe it as strong or very strong. In trading, 73% observed rising competition, while sectors like services, logistics, and transport felt less affected at about one-third each.
The nature of business relationships with China also influences the level of perceived competition: 88% of companies with investments or local establishments in China, 86% exporting to China, and 82% importing from China feel noticeable competitive pressure. Even 38% of businesses without direct dealings with the Chinese market noticed increased competition.
Innovation over retreat
To prepare themselves, companies are focusing on measures to enhance their competitiveness. 60% are prioritizing product innovations, 50% are working on cost reductions, and 39% are exploring new sales markets. 31% of enterprises are opting to cooperate with Chinese partners; this rises to 49% for those relying on goods and materials imported from China. Another 19% plan to relocate their investments due to the increased competition, with the number doubling among businesses already operating in China. Only 12% would consider withdrawing from their business entirely.
Focus on a united Europe
The majority of enterprises are calling for European action to address growing Chinese competition and adopt strategies that enhance resilience. 67% support a unified EU external economic policy, while 60% advocate reducing strategic dependencies and 49% demand better protection for critical infrastructure.
Restrictive trade policies receive less support: only 36% favoured more limited access to the EU market—although this rises to 42% among those already facing market pressure. 31% wish for a more market-oriented Renminbi exchange rate, while an equal number favour stricter trade defence measures. Simultaneously, 25% back reducing bilateral trade and investment barriers, while 18% support eased innovation partnerships. 7% opposed any significant market interventions for fear of retaliatory measures.
Preferred measures vary based on business orientation. Companies without Chinese exposure tilt toward reducing strategic dependencies (64%) and excluding Chinese enterprises from critical infrastructure projects (54%). Those with export or investment ties to China favour reducing trade barriers (32-38%) and adopting a freer market exchange rate (41-43%).
EU needs to act decisively
In response to trade distortions with China, 55% of businesses advocate for stronger trade remedies, even if it might entail adverse effects. Opposition came mainly from companies with direct Chinese exposure. Strongest endorsements were seen among industrial sectors and businesses directly feeling competitive pressure.
China competition shaped by cost pressure
Feedback indicates that the competition risks are not solely due to China but also European structural disadvantages. Key challenges include:
- Higher energy or labor costs in Germany compared to Chinese competitors.
- Excessive bureaucratic regulations in Europe.
- Impacts of China’s "China First" policies restricting market access for foreign businesses.
- Unfair advantages for Chinese exporters due to currency manipulation and government subsidies.
- Priority access to critical raw materials for Chinese manufacturers.
- Concerns over intellectual property violations by Chinese firms.
However, responses also highlight the dependency many businesses have on cost-effective Chinese production facilities or cheaper components.”
Access full results
The complete survey results can be accessed here:
- Download
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"German companies in competition with China"
DIHK Special Survey 2026
- Information
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File format: PDF (accessible)
File size: 1 MB
Status of: September 2026
Page count: 12 pages
- Relevant in topic:
- International Trade and Market Access
- Key areas:
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- Foreign Trade
Released 03.09.2026
Contact
Andrea Hideg
Director East Asia (Greater China, Korea, Japan)
Klemens Kober
Director Trade Policy, EU Customs, Transatlantic Relations
Lola Marie Machleid
Director International Economy