BEIJING (dpa-AFX) – According to a survey, German companies are facing increasing competition from local competitors on the Chinese market. 30 percent of the companies surveyed consider it likely and 16 percent very likely that their Chinese competitors will be leaders in their industry in terms of innovation within five years, according to the business climate survey by the German Foreign Chamber of Commerce (AHK) in China on Wednesday. Five percent even stated that Chinese companies were already dominating further development in their industry.
“Competition is getting stronger. Chinese companies are getting better,” said Ulf Reinhardt, AHK CEO in China. However, according to the survey, German companies also feel disadvantaged. Around one in three companies surveyed felt that they were hindered by legal uncertainties. Just over one in five said they were treated unequally compared to their Chinese competitors.
Public tenders also appear to be a problem: 53 percent of the companies that took part cited a lack of transparency or preference for Chinese applicants as a problem. According to Reinhardt, the Chinese government is taking steps to improve the situation for foreign companies. Fair competition will encourage innovation across all industries in China, he said./jon/DP/jha