Around 200 German businesses open affiliates in China each year, Germany’s leading business organization said Thursday.
The Association of German Chambers of Commerce and Industry (DIHK) cited the huge market and low labor and production costs when explaining its member's rush into the world’s largest developing country. Some 4,500 German businesses to date have invested in China’s development zones and hi-tech zones, with around 200,000 people on their payrolls, DIHK reported, citing recent research findings. The average annual turnover of German businesses in China ranges from €15 million to €20 million ($21.9 million to $29 million ), with an average number of employees between 100 and 120, according to the research. DIHK pointed to plagiarism, corruption, bureaucracy and lack of talent as the major obstacles facing German businesses in China, most of which deal with machinery-manufacturing and engineering. (people.com.cn)