German firms eye localization strategy

Amid growing competition and price pressure, German companies are increasingly adopting a localized strategy in China, operating with greater autonomy and aligning their operations with the mindset and practices of local businesses, a survey published by the German Chamber of Commerce in China revealed on Wednesday.

According to the chamber's 2024-2025 business confidence survey, about 40 percent of respondents reported operating more independently from their headquarters — marking a significant 12 percentage point increase from last year.

The survey, conducted between Sept 3 and Oct 8, gathered responses from 546 member companies of the chamber, which represents around 2,100 members across China, including Covestro, Mercedes-Benz Group, Siemens AG and SAP.