German companies: Bad deals in China

German car manufacturers like Volkswagen and Daimler are trying to give the impression that the economic course in their largest market, in China, almost as goo

German companies: Bad deals in China

German car manufacturers like Volkswagen and Daimler are trying to give the impression that the economic course in their largest market, in China, almost as good as before the outbreak of the Coronavirus. The German companies are more pessimistic with regard to the recovery in the middle Kingdom.

Hendrik Ankenbrand

business correspondent for China, based in Shanghai.

F. A. Z.

So the chamber of Commerce in China in a survey conducted by the foreign 55 percent that you have seen in the first half of the year expected to be a decline in revenues compared with the same period last year by 20 percent or more. 27 per cent saying their turnover had decreased to less than 10 percent. This is a far worse result, than the company had expected in last February, when the epidemic in China was at its peak and the government had prescribed for the economy to a standstill.

a Worrying slump in sales

other than the Manager had at the time accepted, is not the return to normal production conditions of the Problem. German companies suffer severely that between 2000 and 2500 of your non-Chinese employees are not allowed to return to the country. Although the European Union has offered to let the Chinese re-enter, holds China to its limits for most foreigners. Anyone who manages to get an exemption for the entry, for two weeks in quarantine. The foreigners had to endure so far, with very few exceptions, in state-run Hotels often inferior in quality for two weeks in a room.

Almost three-quarters of the 227 companies surveyed by the chamber of Commerce in the second half of June, state that their conditions of production, by and Large, are returned to the normal levels of before the crisis. The Chinese workers and employees that were sitting still, months after the Lockdown, in many cases, in their hometowns everywhere in the country, have returned to their jobs.

Updated Date: 30 July 2020, 15:20

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