1、The New China StoryShort-term Instability,Long-term StrengthMultinational companies have built up a strong local presence in China in the past decades.Many of them based their success on the“Old China Story,”which was mainly driven by the so-called“Three Carriages”consumption,investment,and net expo

2、rts,along with other driving forces such as low labor cost,lax environmental regulations,and high capital productivity.However,this“Old China Story”is over.Uncertainty and unpredictability have emerged as part of the Chinese economy,and past advantages that contributed to economic growth are disappe

3、aring.On the other hand,bilateral(economic)relations have proven successful,yet controversies continue to emerge in both bilateral relationships and the global context.The bilateral relationship between Germa-ny and China is being reassessed by the German government in all areas as part of its“China

4、 Strategy,”mainly due to political developments in China in recent years and Germanys“turn of the century”in foreign policy,sparked by the Russian war of aggression against Ukraine.The assessment of China in the triad of the cooperation partner,economic competitor,and systemic rival is now a consens

5、us among political stakeholders in Germany,the EU,and among German businesses.It is equally agreed upon that human rights violations are not compatible with the values of German companies.German companies are considered model companies in China in social responsibility and sustainable business pract

6、ices.Over one million employees of German companies in China also serve as ambassadors in society for the values German companies represent.In this context,multinational companies are now discussing the best ways to mitigate risks and better engage in the Chinese market.Combined with Roland Bergers