German businesses in China are seeing improvements as the country's economy restarts, but still face serious challenges from the coronavirus crisis, according to a newly released survey.
The results of a March survey of members of the German Chamber of Commerce in China were published on Thursday.
"German companies in China are technically capable of producing almost at pre-crisis levels," said Maximilian Butek, a member of the board.
Staffing ratios, production capacities and internal logistics have normalized for most of the respondents, the survey showed. However, actual business activity has barely resumed.
"The economic effects on companies are still serious," according to the chamber.
More than two-thirds of the companies surveyed predicted a double-digit decline in sales for the first half of the year. This is 20 percent more than in a survey conducted in February.
Most companies are trying to postpone or even cancel investments, and business will probably not return to pre-crisis levels until the beginning of the second half of the year, according to the research.
Factories and companies are resuming work and hardly any new cases of community transmission of coronavirus have been reported for weeks.
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