German firms urge new government to adopt a more pragmatic, forward-looking approach toward China: chamber

German companies operating in China are calling on Germany's new federal government in Berlin to adopt a more pragmatic and forward-looking policy approach toward China, emphasizing partnership over rivalry, according to the German Chamber of Commerce in China on Wednesday.

German businesses hope the new administration will "concentrate on the topic of China being a partner," Oliver Oehms, executive director and board member of the German Chamber of Commerce in China-North China, told the Global Times in an interview on Wednesday. "The previous German government developed a so-called 'China strategy' based on three dimensions - partner, competitor, and systemic rival."

"While China may be seen as a competitor or systemic rival, it is above all a country undergoing significant economic transformation. We would like to see more emphasis on economic opportunities, and stronger commitment from the new government through regular high-level visits, government-to-government activities, and more proactive support for bilateral business relations," Oehms said.

A flash survey of 143 member companies conducted by the chamber in April and released on Wednesday found that 67 percent of German companies expected the new government to pursue active and informed engagement with China. Meanwhile, 52 percent said that improving China's image in Germany would support their business operations, and 40 percent saw early visits by senior officials as a key sign of political commitment.

Despite geopolitical headwinds, German firms remain committed to China. According to the survey, 50 percent plan to increase their investment in China over the next two years, and 38 percent are accelerating localization. As global competition intensifies, German firms in China are signalling that resilience, not retreat, will define their approach, with long-term strategy grounded in market fundamentals and cooperation, according to Oehms.

"China has long been a manufacturing hub not only for Germany but for the world, and its role has evolved," Oehms said. "It's no longer just an export market. It is a rapidly growing innovation partner. That's something still overlooked by many in Germany." He called on Germany's federal and state governments to update their perception of China as a forward-looking, future-oriented partner.

According to the survey, tariff issues between China and the US remain a major concern, with 76 percent of German firms citing impact from US tariffs. US export controls and anti-sanctions legislation are also cited as significant constraints.

"The tariffs are hurting everyone worldwide, hurting businesses, be it in the US, in China, or in Germany alike. It's also hurting consumers, because it's making products more expensive, especially for consumers in Europe, in Germany and in the US. That's already visible across product lines and industries," Oehms said. "Sooner or later, US decision-makers will understand that the American economy is suffering just as much as others."

Oehms also called on the EU to engage in closer and more forward-looking bilateral business and investment relations with China. "We need the European Union for this, because trade policies are designed and created in Brussels, not in Berlin. Therefore, it's an interesting opportunity also to advance with the kind of bilateral trade and investment agreement. We'd love to see that," he said.