Long-term development is a challenge
For the newly acquired German companies, long-term
development is a challenge. It is unclear what will hap-
pen once the location guarantees expire, particularly if
the growth of China’ s economy continues to slowdown in
coming years.
The effects for both the Chinese parent com-
pany and its German subsidiary are therefore difficult to
estimate. Add to this the fact that there is already a cer-
tain amount of technology transfer to China taking place,
for example, through the exchange of personnel or patents
(Emons 2015: 144). This raises the question of what this
might mean in the long termfor the company and what
role this will play for the Chinese investor after it adopts
the acquired technology in its China location.
Currently, froma business perspective, the opportunities
presented by Chinese FDI in Germany appear to outweigh
the challenges.
This is especially true for the Chinese inves-
tors, but it also applies to the newly acquired German com-
panies. Most of these acquisitions have taken place in the
past three years. In many cases, both the locations and j obs
enj oy a limited protection period. Only when this runs out
will it be possible to predict long-termprospects for these
investments.
EU Forecast
euf:ba1.8i:56/nws-01