Doing business in China – the modern German experience

In: European business review, Band 14, Heft 5, S. 351-363

Abstract

This paper examines German trade and investment structures in relation to China, establishing for the 1990s: a severe trade imbalance, with stagnating German exports and sharply rising imports; it also establishes, despite occasionally substantial increases in contracted investment, a general pattern of steep decline in realized German investment. These findings contrast markedly with official surveys of German business opinions which seem to yield a very positive frame of mind by German businessmen regarding their business activity in China. Both grounds for disillusionment and success factors for foreign (German) business in China are explored, phenomena which are possibly shaping German conformance to the wider, distinct and apparently inexorable trend away from joint ventures towards wholly foreign‐owned enterprises. Regardless of such developments, Germany is a key business partner for China, not least because of its readiness to share sensitive high‐technology as, for example, in the field of environmental protection.