German Investment In China Rises To Record High

German direct investment in China rose by 4.3% to a record high of 11.9 billion euros ($12.7 billion) last year and also increased as a share of the country's overall investment abroad, according to official Bundesbank data analyzed by the IW institute, as reported by Sarah Marsh for Reuters.

German companies have invested as much in China in the last three years as in the previous six years. I Photo: Volkswagen Group China

The data underscores concerns that German firms continue to invest heavily in China despite the government's pleas for them to reduce their exposure and its sharp cut in investment guarantees for the country.

German companies have invested as much in China in the last three years as in the previous six years, according to the IW Institute report that was obtained exclusively by Reuters.

Still, German investments in China in the last four years were financed entirely by reinvested profit, and companies have also withdrawn capital, painting a more nuanced picture.

"We can assume that there remains a split between the few big companies and the majority of small and medium-sized enterprises," said IW economist Juergen Matthes in the report.

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