AHK Policy Barometer

The Policy Barometer gives quarterly updates on current economic policy topics. It checks in with the sentiment of German companies, shares AHK's perspective on it, highlights our advocacy efforts with the German and Chinese governments and introduces our practical tools. 

Read our quarterly Policy Barometer for insights on how German companies deal with economic policy issues and discover practical tools. This is a shortened version; members receive the full version via email.

Current Spotlight on Foreign Investment

Status Quo: Several documents promoting FDI have been released recently, including the State Council's 24-point paper Opinions on Further Optimizing Foreign Investment Environment and Reinforcing the Efforts to Attract Foreign Investment. The fact that it has been released by the State Council gives it authority and requires ministries and government agencies to act.

Pulse Check: Most of the points touched upon have been on the advocacy list for years, but are now in the spotlight at the highest level. A few details are new, particularly in the intellectual property and venture capital area. Read more in the full report.

More Guidance for German Supply Chain Law

Status Quo: In mid-August, the Federal Office for Economic Affairs and Export Control (BAFA) published a new guidance document for companies. The brochure, which spans approximately forty pages, provides a detailed explanation of how companies can understand and fulfill the requirements of the law, including obtaining substantiated evidence to identify any inconsistencies or issues in the supply chain.

Pulse Check: German companies, especially SMEs, require significant assistance to comply with this intricate legislation. Some companies have begun implementing it, while others are still unsure if they are on the right track and whether their efforts will meet BAFA's expectations. Any guidance that sheds light on the matter would be beneficial for them. Read more in the full report.

Green Energy: Expanded Renewable Energy Certificate Scheme

Status Quo: Recently, China announced its plan to expand eligible projects for domestic Green Energy Certificates (GEC) to include all types of renewable projects, including offshore solar and wind, biomass, geothermal and newly built hydropower. Previously, the scheme only covered solar and onshore wind projects.

Pulse Check: GECs are still a major element for German companies to fulfill their renewable energy targets. While they hope for more availability of these certificates following the recent expansion, there is still uncertainty as GECs are not harmonized with international certificates and their recognition in other countries is questionable. Read more in the full report.

Cross-Border Data Transfer: The Standard Contract

Status Quo: At the end of May, the Cyberspace Administration of China (CAC) published a standard contract that is intended to regulate the exchange of data between the domestic personal information handler in China and the overseas recipient. This standard contract approach is expected to be the most widely adopted approach to fulfill administrative requirements for outbound transfer of personal information. The measures have come into force as of June 1, 2023, and the application for the approval process must now be submitted to the local CAC authority by the end of November at the latest. Companies that exchange a significant amount of data and do not fall under the standard contract approach must go through a certification process.

Pulse Check: German companies report difficulties in reaching out to CAC or identifying designated contact persons when they have doubts about implementing cross-border data transfers. A lot of effort is still required to sort out data. Read more in the full report.

German Govenment published long-debated China Strategy

Status Quo: In mid-July, the German Government published its first-ever China Strategy after two years of development, which will guide its future engagement with China and provide a political framework for German businesses operating in or with China.

Pulse Check: Companies did not wait for the strategy, they have already intensified their evaluation of their engagement in and with the Chinese market. However, how the strategy will be implemented is still crucial. Some ministries, such as the BMBF (Ministry for Research and Education) have issued their own guidelines, while others are still working on it. Read more in the full report.