German chamber of commerce warns of growing risks in China business

The German Chamber of Industry and Commerce (DIHK) sees increasing risks of doing business with China as the country expands its position on the world markets in numerous industries.

"This presents opportunities for German companies, for example through strong technological progress and local innovation," DIHK President Peter Adrian tells dpa. "However, this is offset by growing risks, such as government intervention and unequal competitive conditions."

Therefore, German Chancellor Friedrich Merz's scheduled visit to Beijing on Tuesday comes at the right time, according to Adrian.

China is of central importance to the German economy, but the framework conditions have shifted noticeably, he added.

While sales opportunities for German companies in the Chinese market have declined significantly, imports from China are on the rise.

"Germany and the European single market remain a key sales market for Chinese goods," said Adrian. "In addition, there continues to be considerable dependence on China for critical raw materials and intermediate products."

As well as the issues of a level playing field in trade and investment, export restrictions on critical raw materials should also be addressed during the visit, Adrian said.

The existing restrictions jeopardize supply chains and made investment decisions difficult for German companies, according to the DIHK head.

"Export controls must be rule-based and transparent," said Adrian. Existing approval and control processes must be simplified, accelerated and made more predictable.

China last year again overtook the United States as Germany's most important trading partner amid the tariff conflict with the administration of President Donald Trump.

In 2025, the volume of imports and exports in trade with China totalled €251.8 billion ($296.6 billion), according to the latest German government data.

However, German companies complain of increasing barriers in the Chinese market.

Beijing has also restricted exports of rare earths - critical raw materials used in products such as mobile phones and electric motors – creating tensions between the governments.

"I am counting on the Chancellor to represent the interests of the German economy in Beijing," said Adrian, noting that the Chinese market still offers German companies great opportunities.

"These undoubtedly include renewable energies, the circular economy, medical technology and large infrastructure projects."

Merz is to be received with military honours on Wednesday by Chinese Premier Li Qiang in Beijing. In the afternoon, he is due to hold a one-on-one meeting with President Xi Jinping.

The chancellor will address "the whole range of topics" during his two days in China, deputy government spokesman Sebastian Hille said in Berlin on Friday. "This naturally includes the human rights situation," he said.