About 61 percent of German companies plan to increase their investments in China within the next two years, up from 53 percent in the previous year and marking the highest level since 2023, the German Chamber of Commerce in China said in a flash survey on Tuesday.

The survey, conducted between April 15 and 21, 2026, received responses from 216 member companies.

About 37 percent of German respondents predict an improvement in China's economy over the next six months, a substantial increase of 22 percentage points from last year. At the same time, only 17 percent expect a deterioration - a sharp decrease from 56 percent in 2025.

The study found that 42 percent of German businesses expect rising turnover by the end of 2026, compared with 29 percent in 2025, while 29 percent foresee higher profits - up 11 percentage points from last year. Participants also reported increases in investment and employment, contributing to an overall more positive outlook.

Oliver Oehms, executive director of the German Chamber of Commerce in China-North China, said the data shows that German companies are more positive about the Chinese economy and their industry outlook. Expectations for turnover, profits, investment and employment are all higher compared to last year.

The German Chamber of Commerce in China has more than 1,800 members across its three regional chapters covering North China, East China, and South and Southwest China.