Chinese direct investment in Germany
Germany is the third largest host country in the Euro-
pean Union (EU) for foreign direct investment (FDI) from
China. Access to the German and European market, qual –
ified workers, and the quality guarantee “Made in Ger-
many” are important reasons for Chinese businesses to
invest in Germany.
As a highly developed country with a
large number of so-called “hidden champions”, i. E. Com-
panies that are world market leaders in their respective
technological niche, Germany is also in the focus of the
Going Global Strategy launched by the Chinese govern-
ment in 2000, which promotes FDI of Chinese businesses.
2. Despite high growth in the past fewyears, China’ s rela-
tive share of FDI stock in Germany continues to be low.
According to the figures of the German Federal Bank, in
2014 China held only 0. 3 percent of German FDI stock.
Vice versa, according to Chinese figures, in 2015 Ger-
many took around 0. 5 percent of China’ s global FDI
stock. In 2015 the Chinese FDI flows to Germany suf-
fered a sharp decline, amounting to only 409. 6 million
US dollars. In 2014 this figure was 1. 4 billion US dollars.
Nevertheless, there is further potential for Chinese FDI
in Germany in the future. According to our proj ections,
Chinese companies might invest up to 4. 3 billion US dol –
lars in Germany in 2025.