German companies have shown “evident” optimism about the outlook in China this year and most remain committed to the market despite concerns over economic decoupling from the US, according to the latest business confidence survey, reported the South China Morning Post.
Their optimism was based on the country’s post-coronavirus recovery and the prospect of a landmark investment treaty being agreed between Beijing and Brussels when the poll was conducted in October and November, said a report released by the German Chamber of Commerce in China on Tuesday.
Although business was hit by the pandemic in the first half of 2020, more than 40% of the more than 500 German firms polled said their profits went up in China last year.
An “overwhelming majority”, or 96%, of the companies surveyed said they had no plan to leave China, and 72% aimed to invest more in the country over the next two years. Only 3% of the firms said they were considering leaving China but did not have any “specific plans” yet. “Optimism is evident for 2021,” the report said.