More challenges than opportunities

From a macroeconomic perspective, the free flowof goods,
capital, and people is a great opportunity and can contrib-
ute significantly to increasing economic prosperity. FDI
inj ects capital into the country’ s economy, can create
new jobs, or, in the case of M&A transactions, preserve existing
jobs.

Since Chinese investors in Germany are focusing on
high-tech industries such as machine tools, automotive,
and the ICT sector, they are helping to create and preserve
high-quality j obs and are also promoting research and
development in Germany through the creation and expan-
sion of R&D centers (Jungbluth 2014a: 246-248). In gen-
eral, FDI further intensifies the relations between the
countries involved, not only economically, but also politi –
cally and culturally. This is true regardless of the investor’ s
country of origin.

A particular opportunity is made possible by the increase
in Chinese FDI in Germany: stronger leverage for German
companies in China. Achinese parent company can improve
networking with key stakeholders in China and thus better
represent the German subsidiary’ s interests in China. And
the more Chinese companies that become active in Ger-
many and are given an equal standing with German com-
panies, the more equal treatment of German companies in
China can be demanded in the future.

These effects have yet
to be systematically studied and are more likely to appear
in the long term( >10 years).