Trade
German Direct Investment in China Rose to Record in 2023
- China FDI-share highest since 2014: German Economic Institute
- EU, Germany have vowed to tighten outbound investment controls
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German companies’ direct investment into China reached a record of nearly €12 billion ($13 billion) last year, demonstrating an eagerness to expand in the world’s number two economy even while the European Union steps up scrutiny of these investments because of security concerns.
Investment in China as a share of Germany’s total direct investment abroad expanded to 10.3% last year, the highest since 2014, according to a German Economic Institute report based on data from the Bundesbank. The investment was financed by the retained profits of German-controlled enterprises in mainland China and Hong Kong, it found.