China surpasses the United States to become Germany's top investment source country!

May 21, 2026. The German Foreign Trade and Investment Agency (GTAI) has released the "2025 Report on Foreign Investment in Germany":

Report findings:

China with 228 projects (+14.6%), for the first time exceeding the United States (206 projects, -10%), has become Germany’s largest investment source country.

The total number of foreign-invested projects in Germany simultaneously released stands at 1,564 (-9.3%), a decline lower than the EU average (-18.1%).

In 2025, China surpassed the United States for the first time with 228 investment projects, becoming Germany’s top investment source country. This data not only marks a simple shift in rankings but also symbolizes a pivotal transformation in global geopolitical economic patterns and a qualitative change in Sino-German industrial relations.

Against the backdrop of overall contraction in global foreign investment, China and the U.S. have shown starkly contrasting performances.

China’s resilient rise: In 2025, the total number of foreign greenfield and expansion investment projects across Germany declined by 9.3%, while the EU region saw a drop of around 18%. Under such severe conditions, Chinese investments in Germany not only held steady but achieved a year-on-year increase of 14.6%.

The U.S.’ noticeable retreat: Long-standing leader the United States saw its number of investment projects in Germany fall by 10%, dropping to 206 projects. Behind this trend lie structural issues within Germany—such as high energy costs and cumbersome bureaucratic procedures—that have deterred some American capital. Additionally, transatlantic trade tensions (e.g., U.S. tariff hikes on European vehicles) and domestic high interest rates in the U.S., leading to capital repatriation, are significant contributing factors.

China’s rise in Germany’s investment rankings is far more than just an accumulation of numbers—it reflects a comprehensive upgrade in investment quality and depth. Chinese enterprises’ investments are highly concentrated in technology-intensive sectors such as electronics and automation (30%), transportation and logistics (22%), and energy and raw materials (15%). This indicates that Chinese companies are no longer merely exporting products; they are now deeply embedded in the core of German industry.

Not only are Chinese firms increasing their investments in Germany, but German firms are also aggressively embracing the Chinese market. In 2025, direct investments by German companies into China surged to approximately €7 billion, a year-on-year increase of over 55%, marking a four-year high. Giants like Volkswagen and BASF are accelerating the relocation of R&D centers and mega-factories to China, forming a deeply interwoven, mutually integrated landscape where “we are in each other, and each other is in us.”

In summary, this 2025 investment report signifies that Sino-German economic and trade cooperation has completely moved beyond the past one-way model of “German technology + Chinese market,” officially entering the “Co-Development 2.0 Era” based on deep industrial chain integration and joint innovation.

Original article: toutiao.com/article/1865844886091788/

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