German foreign direct investment(FDI) in China
Important for both countries, German foreign direct investment
(FDI) in China has to date been greater than the other way
around, with German companies investing in China since
the early 1980s.
For example, Volkswagen began building
the first Chinese-German j oint venture in Shanghai in 1982
(Volkswagen AG, 8. 6. 2007). German companies’ FDI stock
in China amounted to about €60 billion in 2014, making
China one of the main targets for German FDI. As a recipi –
ent of FDI fromGermany, China ranks fourth in the world,
after the United States, the United Kingdomand Luxem-
bourg, and has the highest amount of German FDI in Asia
(Deutsche Bundesbank 2016). For China, Germany was the
seventh-largest source of FDI and its largest European
investor (MOFCOM, 20. 1. 2016).
Without the considerable
sums of foreign capital that have flowed into China over the
last three decades, the country would not have become the
“factory of the world” and what it is today: currently the
world’ s second largest economy and one of the main eco-
nomic powers in the 21st century. Without a doubt, China
has greatly benefited fromdirect investment fromGermany
and other countries (Jungbluth 2014a: 77-85).
EU Forecast
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