Survey: Iran conflict, trade tensions weigh on German firms in China

Geopolitical tensions are weighing on German businesses in China, according to a survey by the German Chambers of Commerce Abroad (AHK).

The survey found that 75% of German companies said the Iran conflict was affecting their operations. More than half of those (55%) reported higher logistics costs, followed by rising procurement prices (47%) and increased prices for their own products (20%).

Strained relations between China and the European Union were cited as having a negative impact by 59% of respondents. Ahead of a visit to China this week by US President Donald Trump, 69% said tensions in US-China trade were also hurting their business.

In 2025, the tariff dispute between China and the United States weighed heavily on global trade, though a pause is currently in place. Compared with last year’s survey, the share of companies reporting a direct impact from Chinese tariffs fell by 21 percentage points, while the figure for US tariffs declined by 7 points.

Companies are also increasingly concerned about blacklists issued by the trade authorities in Beijing and Washington, which can lead to restrictions or export controls. Some 44% cited US lists, up 12 points year-on-year, while 27% pointed to Chinese registers, up 6 points.

Despite the challenges, sentiment has improved. Of the 216 respondents, only 17% expect China’s economy to worsen over the next six months, down from 56% last year. Meanwhile, 37% anticipate improvement, while nearly half expect no change.

The AHK conducted the survey between April 15 and 21, with 216 responses from more than 1,800 German member companies in China.