An ID.UNYX 08, the first model co-developed by Volkswagen Group China and XPENG, rolls off the production line in Hehei, East China's Anhui Province. Photo: Volkswagen Group

German businesses remain positive about China's economic growth outlook, with higher expectations for business turnover, profits, investment and employment opportunities compared to last year, according to a survey released by the German Chamber of Commerce in China on Tuesday.

And, due to global geopolitical volatilities, the majority of German companies have been impacted by the ongoing Middle East conflict, which caused oil prices to skyrocket, the survey said.

The survey was conducted between April 15 and April 21, with a total of 216 member companies of the German Chamber of Commerce in China participating.

According to the survey, 61 percent of surveyed companies plan to increase their investments in China within the next two years, up from 53 percent in 2025 and marking the highest level since 2023.

The companies are largely positive on China's economy, with 37 percent predicting an improvement in China's economy over the next six months, a substantial increase of 22 percentage points from last year.

By the end of 2026, 42 percent of the surveyed companies expect rising business turnover, while 29 percent foresee higher profits. The companies also reported increases in investment and employment, contributing to an overall more positive outlook, according to the survey.

In a previous interview with the Global Times, Oliver Oehms, Executive Director & Board Member of the German Chamber of Commerce in China, said that China has been a "very relevant" market for German products and services for decades, be it Made in Germany or locally. Now, China is growing increasingly important for German companies as a hub for technological innovation and advanced manufacturing.

In February, German Chancellor Friedrich Merz led a high-profile business delegation to China, underscoring Germany's interest in strengthening economic ties with China, with both sides seeking to expand cooperation in key industries.

The survey by the German chamber is one epitome of China's growing attractiveness to foreign governments and businesses for cooperation and investment.

Data from the Ministry of Commerce of China showed that more than 70,000 new foreign-invested enterprises were established nationwide in 2025, up 19.1 percent year-on-year. Even amid a slowdown in global investment growth, foreign companies are still choosing to accelerate their investment into the Chinese market, underscoring the significance of China's massive market.