MNI BRIEF: German Firms In China See Slight Demand Uptick

German firms operating in China have noted a slight increase in prospects, the German Chamber of Commerce said on Tuesday, citing recent business sentiment survey.

This year, 19% of respondents expected an improvement in their industry, up 4 percentage points from the record low recorded in 2024, the data showed. Sentiment regarding China’s economic development also improved, rising 3 pp compared with 2024.

Chinese firms’ overseas expansion has emerged as the primary business opportunity for German companies operating in China, with 36% identifying it as their main opportunity—up 4.7 percentage points from 2024. In addition, two-thirds of respondents reported that they are already engaged with Chinese companies expanding abroad.

Talks between the European Union and China to loosen restrictions on rare earth exports are making little progress, policy advisors in Beijing told MNI. (See MNI: Rare Earths Deadlock As EU Elevates China)