International Growth OfficeFor many Chinese companies considering Europe, Germany is the first country on the list. That is understandable. Germany represents roughly 25% of EU-27 GDP and around 19% of the EU population. Its economy also remains highly industrialised. In 2025, industry accounted for 22.8% of German gross value added, compared with 19.1% across the EU-27. For companies in manufacturing, industrial technology, mobility, engineering and many B2B sectors, Germany can therefore look like the obvious place to begin. But there is an important difference between: Germany is an important European market.
and: Germany should be our first European market.
The first can be true without the second being true.
Germany should win the decision — not inherit it
A market should not become the first expansion market simply because it is large, prestigious or familiar. The useful question is: Do we currently have a stronger commercial path in Germany than elsewhere in Europe?
For one Chinese company, the answer may clearly be yes. Its target customers may be concentrated in German industry. It may already have relationships with German manufacturers. A German reference customer may carry strategic value across Europe. A capable local partner may already exist. Then Germany can be an excellent first market. Another company may have none of those advantages. It may already have a strong prospective customer in Austria, an effective distribution relationship elsewhere or a faster route to a credible first reference in another European market. For that company, starting with Germany only because it is the largest market may make the expansion harder rather than stronger.
A large market can also be demanding
Scale creates opportunity. It also attracts competition. German buyers may already have established suppliers, mature procurement processes and high expectations around quality, service, documentation or implementation. And the current market matters. Germany remains Europe's largest economy, but its industrial environment is not static. Production in Germany's producing sector was 1.1% lower in 2025 than in 2024; machinery and automotive were among the areas contributing to the decline. That does not make Germany unattractive. It demonstrates why a market-entry decision should not rely on a timeless picture of “German industry”. The better question is: What is happening now in the specific sector and buyer group we want to enter?
The best first market and the biggest future market may differ
For a company entering Europe for the first time, the first market has another job. It should generate evidence. Can buyers understand the proposition? Which proof points create trust? How long does procurement take? What localisation really matters? Which partner model works? What does after-sales support require? A market that produces these answers can be strategically valuable even before it becomes the company's largest European revenue source. Germany may ultimately become one of the company's most important markets. That does not automatically mean it must be the first one.
The answer can change
There is no permanent rule that Chinese companies should start in Germany. Nor is there a rule that they should not. Sector conditions, customer priorities, competition, regulation and local relationships change. Patterns can guide the decision. Current evidence has to make it.
The Expand Future perspective
At Expand Future, Germany is part of our core DACH and European environment. That means we understand why it can be attractive. It also means we do not believe it should automatically be recommended. We look at the company first: Who is the buyer? Where is the strongest current opportunity? What route is realistic? Which relationships already exist? What would create a credible first reference? Sometimes the answer is Germany. Sometimes another European market should come first while Germany remains part of the wider strategy.
Considering Germany as your first European market?
A Dedicated Expansion Mandate can help validate whether Germany is genuinely the strongest first route using current buyer evidence, local relationships and execution realities rather than a generic country ranking.
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Sources & evidence
- Germany Trade & Invest, Market Germany: Europe's Economic Hub. Retrieved 3 October 2026; no publication date displayed.
- German Federal Statistical Office / Eurostat, Industry, trade and services: Industry share of gross value added. Data as at 1 September 2026; retrieved 3 October 2026.
- German Federal Statistical Office, Production in December 2025: -1.9% on the previous month. Press release 43, 6 February 2026; retrieved 3 October 2026.