German companies increased investments in China by 5.6 billion euros, while investments in the United States significantly decreased.

Study: German Investment in China Increases by 5.6 Billion Euros, Investment in the U.S. Sharply Declines

According to a study by the German Institute for Economic Research, German companies' investments in China rose by one-third this year, while their investments in the United States have significantly decreased.

Reuters reports that, based on an analysis of data from Germany's Federal Bank by the institute, German investment in China increased by 5.6 billion euros compared to the same period last year—reaching a level comparable to the average half-yearly investment between 2020 and 2025. Affected by trade tensions and Trump-era tariff measures, German investment in the U.S. has dropped by nearly two-thirds, falling to approximately 4.3 billion euros.

Economist Matthes said German firms have little choice but to continue investing in China. He described China as both a crucial sales market and a "gymnasium" for companies to strengthen their competitiveness.

Matthes pointed out that low production costs in China have prompted German firms to expand their operations there, enabling them to compete globally with Chinese rivals.

Original article: toutiao.com/article/1876212715825164/

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