The German business sector holds optimism for China's economic future and is prepared to exhibit patience as the country's stimulus policies come into effect, said a German business figure.
The Chinese government recently unveiled a series of economic stimulus measures. The country's top economic planner also said that China will systematically implement a range of supportive policies.
Maximilian Butek, the executive director of the German Chamber of Commerce in China-East China, welcomed these stimulus measures, anticipating a boost in consumption, but he also stressed patience in observing the results.
"The economy really needs a boost, and starting with increasing the available income, household incomes, for the middle-sized people could really boost the consumption. Nevertheless, I believe that such effects will take some months to be seen in the economy. So we have to be a little bit patient and see what the result is," said Butek.
Highlighting the strong commitment of German companies to the Chinese market, Butek noted that the removal of barriers in the capital market and the cultivation of a favorable environment for foreign sectors would bolster confidence among German enterprises.
"Now I believe that still most of the German companies are very committed to the Chinese market. And even before those stimulus [measures], the German companies kept investing further, because mainly the lack of demand and the increasing competition was challenging us. So with a growing economy, of course, the confidence also will increase. So we hopefully will see more investments not only in increasing resilience and competitiveness, but also that we can see growth and capital expenditures (CapEx) which comes from a growth of the markets," said Butek.
Acknowledging that the current stimulus measures in China are primarily directed towards boosting consumption, Butek said that the initial steps taken by the Chinese government will boost the investment sentiment of the Chinese private sector and foreign companies, on which German companies are highly dependent, as German businesses mainly engage in B-to-B business in China.
As China transitions towards a new developmental phase that prioritizes high-quality growth alongside sustainability, environmental protection, and people-centered policies, Butek affirmed the long-term commitment of German companies to engaging with China.
"Now we entered a new stage, which is positive that the Chinese government says we will focus on rather quality growth. But then a couple of other dimensions come into the game, like sustainability, environmental protection, people-centered policies. German companies also are patient, so we are here to stay here. We have huge responsibility for our employees, for our customers, so we are willing to be working with policymakers in the long term. We are not here for the short term," said Butek.
German business optimistic about China, embracing long-term commitment
