Large German companies continue to invest heavily in China

Volkswagen in China

A Chinese flag flies next to a Volkswagen SAIC representative in Beijing: Volkswagen has been among the 3 largest European investors in China each year for the past four years.


(Photo: dpa)

Berlin European companies’ investment in China is largely concentrated in a few companies. The 10 largest European investors in the world’s second largest economy have acquired nearly 80 percent of all direct investment from Europe in recent years. That’s the conclusion of a study by the rhodium group and published on Thursday.

She says European direct investment in China has become increasingly concentrated in recent years, as well as in relation to countries of origin. Four countries – Germany, the Netherlands, the UK and France – accounted for an average of 87 percent of the total investment value over the past four years. Among them, Germany stands out as the largest investor by far. In the past four years, German investments accounted for an average of 43 percent of all European investments. In 2021 it was 46 percent.

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