Exclusive-German investment in China eases in H1 after record high

By Sarah Marsh BERLIN - German direct investment in China eased in the first half of the year albeit remaining close to its record high in 2022 and increasing as a share of the country'sMusicians, humour and stories galore help Bruce Guthro's Celebration of Life | SaltWireBERLIN - German direct investment in China eased in the first half of the year albeit remaining close to its record high in 2022 and increasing as a share of the country's overall investment abroad, according to...

The data underscores concerns that German firms continue to invest heavily in China despite the government's pleas for companies to reduce their exposure and its sharp cut in investment guarantees for the country. "The trend towards China remains mostly unchanged also this year," said IW analyst Juergen Matthes."Although the German economy is overall investing much less abroad, new direct investments in China remain nearly as high as before."Germany's government has in recent months urged businesses to reduce their strategic dependencies on China given its view that Asia's rising superpower is a growing threat to global security.

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Exclusive-German investment in China eases in H1 after record highGerman direct investment in China eased in the first half of the year albeit remaining close to its record high in 2022 and increasing as a share of the country's overall investment abroad, according to official data analysed by the IW institute. Investment in China dropped to 10.31 billion euros ($11.02 billion) in the first half of 2023 from 12 billion euros in the first half of last year, the IW said in an analysis shared exclusively with Reuters. The data underscores concerns that German firms continue to invest heavily in China despite the government's pleas for companies to reduce their exposure and its sharp cut in investment guarantees for the country.
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