Germany’s Direct Investment in China Reaches Record High of 11.9 Billion Euros ($12.7 billion) – Reuters Report

Germany’s direct investment in China rose 4.3% to 11.9 billion euros ($12.7 billion) last year, a record high. Photographed in February 2022 in Shanghai (2024 Reuters/Aly Song)

[ベルリン １４日 ロイター] – Germany’s direct investment in China rose 4.3% to 11.9 billion euros ($12.7 billion) last year, a record high. This was revealed in a report by the German Institute for Economic Research (IW), which analyzed data from the German Bundesbank (central bank).

The results show that companies continue to invest heavily in China, despite calls from the German government to reduce their exposure to the country.

German companies have invested the same amount in China over the past three years as they did in the previous six years, according to an IW report seen by Reuters.

However, all investment in China over the past four years has been financed by reinvesting profits, with companies withdrawing capital.

“There appears to be a divide between a small number of large companies and a majority of small and medium-sized companies,” IW economist Jürgen Matthes said in the report. Other research suggests that some small and medium-sized enterprises may be looking to reduce their involvement with China or withdraw from it altogether.

China’s share of Germany’s total foreign investment rose to 10.3%, the highest level since 2014.

Germany faces a dilemma. Although Japan wants to reduce its exposure to China, preliminary figures from the National Statistical Office show that China has become the country’s most important trading partner for the eighth consecutive year in 2023.

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Chief correspondent covering political and general news in Germany with experience in Argentina and in Cuba leading Reuters’ broader Caribbean coverage.

2024-02-14 11:06:33
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