Slow internet worries German companies in China
About 49 percent of companies described slow connections as "a problem" in 2013, and 59 percent are "worried" in 2014, according to the Business Confidence Survey 2014.
HR issues still remain the biggest challenge for German firms but a smaller percentage consider them "major" than in the previous years, the report said.
The top four challenges are increasing labor costs, finding qualified staff, retaining qualified staff and slow internet speed. Corruption fell from 5th to 10th. Domestic protectionism, labor disputes and intellectual property rights were all moved up in the list.
German companies in China are performing well and are just as optimistic as last year. The survey received 417 responses and, for the first time, over 50 percent of the companies have been in China for over a decade.
German companies perceive current reform as generally positive. Nearly 70 percent think that the policies could have a beneficial effect on their business. ■