German business in China is recovering, production capacity returns to normal

German business in China is recovering, production capacity returns to normal

German companies operating in China, where it turns out that the new coronavirus has been brought under control, are recording a gradual recovery. This was shown on Thursday by a survey published by the German Chamber of Commerce in China. According to the chamber, the production capacity of more than two thirds of German companies in China has returned to normal levels. "Current indicators point to a stable recovery of the Chinese economy," said Andreas Feege, a member of the management of the German Chamber of Commerce in China. This also contributes to the recovery of foreign companies operating in the Chinese market. As Feege added, as many as 72% of the companies surveyed said their production capacity had returned to normal. However, despite the gradual recovery of the Chinese economy, some sectors are still feeling the effects of the new coronavirus pandemic, the study showed. While the automotive and engineering sectors are thriving, business services are still struggling. The Chinese economy recorded a year-on-year decline of 6.8% in the first quarter of this year. It was the first economic downturn since 1992. Subsequently, however, it recovered rapidly and grew by 3.2% in the second quarter. In the third quarter, the growth rate accelerated even more, reaching 4.9%.