MNI BRIEF: German Firms Expanding R&D In China

MNI (BEIJING) - German companies conducting research in China rose to 63% of surveyed firms, up 6 percentage points from 2022, according to a recent survey by the German Chamber of Commerce in China.

The results showed an increasing trend of localisation, with 29% using China R&D for foreign markets, versus 25% two years ago, the chamber noted on Monday.

Respondents listed customer price-sensitivity as the main driver for choosing China (85%), with increasing capabilities of competitors (82%) and labour cost (72%) coming second and third.

China’s response to the EU’s concession on tariffs recently imposed on China-made electronic vehicles (EVs) suggests that trade relations between the two have entered stand-off mode, Brussels-based officials told MNI. (See MNI: EU To Maintain Piecemeal De-Escalation On China Trade)