The report highlights that major German exporters, including those in the automotive and chemical sectors, are not responding to government requests and are instead spending large sums on new projects that further link their businesses to China, the world's second-largest economy.
The Mercator Institute for China Studies reports that German corporate investments in China rose by €1.3 billion ($1.5 billion) in 2024 compared to 2023, reaching a total of €5.7 billion ($6.6 billion).
MERICS, another research institute, states that German automakers have increased their investments in China by 69% over the same period, reaching €4.2 billion ($4.9 billion).
China is now a key market for companies like BMW, Mercedes, and Volkswagen, but this trend is not limited to the automotive industry. BASF, a major German chemical company, recently opened a new complex in China worth €8.7 billion ($10.1 billion), marking the largest investment in the company’s history.
Bloomberg suggests that German officials in Berlin are hesitant to intervene in foreign investment decisions. According to the agency's sources, "China offers too many quick financial gains to ignore" at the moment. Meanwhile, German Vice Chancellor and Finance Minister Lars Klingbeil is set to visit Beijing soon to address concerns about the country's growing dependence on China. Chancellor Friedrich Merz has also publicly raised the issue of the potential risks involved.
source: bloomberg.com
The Mercator Institute for China Studies reports that German corporate investments in China rose by €1.3 billion ($1.5 billion) in 2024 compared to 2023, reaching a total of €5.7 billion ($6.6 billion).
MERICS, another research institute, states that German automakers have increased their investments in China by 69% over the same period, reaching €4.2 billion ($4.9 billion).
China is now a key market for companies like BMW, Mercedes, and Volkswagen, but this trend is not limited to the automotive industry. BASF, a major German chemical company, recently opened a new complex in China worth €8.7 billion ($10.1 billion), marking the largest investment in the company’s history.
Bloomberg suggests that German officials in Berlin are hesitant to intervene in foreign investment decisions. According to the agency's sources, "China offers too many quick financial gains to ignore" at the moment. Meanwhile, German Vice Chancellor and Finance Minister Lars Klingbeil is set to visit Beijing soon to address concerns about the country's growing dependence on China. Chancellor Friedrich Merz has also publicly raised the issue of the potential risks involved.
source: bloomberg.com