How are German companies investing in China?

中国德国商会GermanChamberNorth

2025-05-30

导读：The Puzzle of Continuous German Investment in China: The AHK Perspective

The Puzzle of Continuous German Investment inChina: The AHK Perspective

This week, the newly released Foreign Direct Investment (FDI) figures show that from January to April the FDI amounted to CNY 320.78 billion, a year-on-year (YoY) decrease of 10.9%, while German investment in China grew by 12.3% YoY during the same period. Despite the current geopolitically challenging situation, FDI from Germany remains stable while total FDI decreases.

But how and where are German companies investing? We compiled a new Factsheet on this topic.

Practical Guide Content

Most investments are directed towards new facilities and innovation.

Automotive and machinery mostly focus their investments on R&D and innovation.

For two-thirds, reinvested earnings are the main source of investment.

Good to Know

This FDI development is consistent with our data and observations, and aligns with the shift towards Localization 3.0. German companies are responding by building a deeper presence in China and operating more local-for-local and local-for-global.

Scan the QR code to download the Factsheet:

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