German companies operating in China have grown more positive about China's economy and their industry outlook, and plan to invest more in China, a survey showed on Tuesday.

The German Chamber of Commerce in China (AHK China) said in a flash survey that 37% of companies predicted an improvement in China's economy over the next six months, a substantial increase of 22 percentage points from last year. Conversely, only 17% expected a deterioration - a sharp decrease from 56% in 2025.

Among the 216 German companies surveyed, 61% of respondents intend to increase their investments in China within the next two years, up from 53% in the previous year and marketing the highest level since 2023.

Meanwhile, expectations for turnover, profits, investment and employment are all higher compared to last year, with 34% reporting improving conditions for 2026, up from 19% in 2025.

According to the survey, three-quarters reported a negative impact from the tensions in the Middle East on their business operations, mainly through higher logistics costs and supply prices.