For many publicly listed German companies, China-which once represented a booming market-has become a source of concern.
The Handelsblatt Research Institute’s analysis of annual financial statements shows that, among the 15 DAX firms that regularly report revenue from China, as well as twelve MDAX and SDAX companies with substantial China operations, the share of total revenue attributable to China fell by almost one‑fifth over just four years-from 18.6 % to 14.9 %.
The decline is most pronounced in the automotive sector. Volvo sold about 42 % of its vehicles in China in its best year, 2020, but that figure dropped to 30 % by 2025. The slowdown is also felt across industry and trade; Adidas’s China revenue share fell from 23.6 % to 14.8 % over five years, Siemens from 13.2 % to 9.1 %, and the fast‑growing power‑plant builder Siemens Energy from 6.1 % to 3.7 %.
Causes include overcapacity and the resulting fierce competition. Even high‑quality suppliers are being forced to lower prices or cede market share, which erodes profits and margins-particularly evident in the German automakers through declining earnings.
