German companies disappointed with Beijing's economic policies
German companies are disappointed with the results of the important meeting of the Communist Party of China on the future economic course of the second largest economy.
Companies had hoped for "more guidance and a concrete implementation of the announced economic stimulus measures," said Maximilian Butek, managing director of the German Chamber of Commerce in Eastern China, in response to the "Third Plenum" of the Party held last week. The meeting usually takes place only every five years and is considered a key event for setting reforms.
"The liberation blow has failed, instead we are experiencing a policy that stands in the sign of continuity," said Butek. German companies in China must continue to prove their mettle in a market environment that is unlikely to improve in the foreseeable future. It is not only the strong competition but also the lack of trust in the market and hesitant investments in the private sector that make life difficult for German companies in China.
Hopes for market opening and equal treatment of foreign companies have also been disappointed. China's leadership wants more economic growth and knows that there is no way around market opening. "The Third Plenum did not contribute to the resolution of this contradiction, but rather intensified it," said Butek. A national-oriented economic policy is problematic for German companies because they could be pushed to the sidelines even further.
Companies expressing disappointment, believed that the Beijing meetings could provide 'more' concrete steps towards implementing the announced economic stimulus measures in China's 'Second largest economy'. Despite the 'German Economics course' orientation in some Chinese institutions, Maximilian Butek, from the German Chamber, expressed his concern that the 'Third Plenum' of the Communist Party has resulted in a policy of continuity, rather than the expected market opening and equal treatment of foreign companies. This policy could further marginalize 'German companies' in China, as they navigate a challenging market environment characterized by strong competition and limited trust in the private sector.
