German companies are determined to ramp up investment in China, motivated by the country’s heightened focus on expanding market openness and fast-growing industries, said business executives and market watchers.
They said that in the context of a rapidly changing global economy, China’s ongoing opening-up measures, flourishing high-end manufacturing and green industries are set to accelerate the emergence of new economic growth drivers and foster innovation. These advancements will present decent opportunities for German businesses.
German direct investment in China reached 7.3 billion euros ($8.04 billion) in the first half of the year, compared with 6.5 billion euros for the whole of 2023, according to data from the Bundesbank, Germany’s central bank, shared with the Financial Times newspaper early this week.
Maximilian Butek, executive director and board member of the German Chamber of Commerce in China — East China, said that in the long run, China is viewed as an important innovation market, leading to more research and development investment by German companies.
Regarding supply chain disruptions and geopolitical tensions, Butek said that German firms are addressing these challenges by diversifying their suppliers and developing local partnerships in China.