File photo shows workers assemble a car at a workshop of FAW-Volkswagen Automobile Co., Ltd. in Changchun, northeast China's Jilin Province. (Xinhua/Xu Chang)
BEIJING, Jan. 19 (Xinhua) -- The confidence of German companies in the growth of the Chinese market remains strong, according to an annual Business Confidence Survey released by the German Chamber of Commerce in China and KPMG on Tuesday.
Around 60 percent of the 596 German companies in China that took part in the survey reported improved business operations last year, said the report.
Over half of the companies expect the development of their industries in China to improve in 2022, the report said.
"The Chinese market remains one of the most significant global markets for German companies," the report noted. Some 96 percent of the surveyed companies said they had no specific plans to leave China in 2022.
Meanwhile, 71 percent of the companies said they intend to increase their investments, with 18 percent of them indicating a "strong increase."
Almost half of the companies said they will focus their investments on new manufacturing facilities, 47 percent will expand investment in research and development, while 37 percent will add more to automation and productivity development.
The report has highlighted opportunities for German companies as China strives to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. Around 50 percent of the respondents see China's carbon neutrality goal as a business opportunity.
The report also noted some operational and macroeconomic business challenges faced by German companies in China, such as travel restrictions and increasing competition from domestic enterprises.
Half of the surveyed companies expect their Chinese competitors will become innovation leaders in their industry within the next five years.
In terms of the overall impact of China's national dual circulation strategy and the country's efforts to achieve more self-sufficiency, 44 percent of the respondents consider it an opportunity, while 36 percent take it as a challenge.
There is also an accelerated trend of localization of German companies' operations in China over the past decade, said the report, attributing this to reasons including changing consumer behavior, market expectations and the speed of innovation in China. ■
