German Media: Chinese Acquisitions of German Firms Show Positive Development
A journalist conducted a tracking survey of approximately 50 German companies acquired by Chinese investors, finding positive developments in both corporate revenue and employment levels. However, escalating geopolitical risks have increased the complexity of international investments.
Chinese acquisitions in Germany peaked in 2016, when Chinese investors partially or fully acquired 68 German firms. The industries involved were concentrated in mechanical engineering, automotive, and electrical engineering. As of May 2025, China has surpassed the United States to become the country with the most investment projects in Germany.
Throughout the years, critics have warned that German technology is being sold off, while others welcome new capital and market access to drive corporate growth.
How are these Chinese-acquired companies performing today? Reporters from ARD’s economic channel Plusminus analyzed around 50 companies, focusing on company revenues and the number of employees. All these companies had gradually come under Chinese ownership over the past decade.
To the analysts’ surprise, the operational performance of these companies was remarkably stable. Five years after acquisition, the average revenue of these companies had increased by 6% compared to the year of acquisition.
In terms of employment, no large-scale layoffs were observed. After a period of decline during the COVID-19 pandemic, employee numbers have recovered to the levels present at the time of acquisition, with some even showing slight increases.
The findings align broadly with overall trends in the German economy. There is no evidence indicating systematic selling-off of German enterprises.
70% of Companies: Technology Transfer to China Is Increasing
The analysis points out that one major motivation for Chinese investors is acquiring German technological expertise—but it confirms that knowledge transfer is frequent. About 70% of surveyed companies reported that their technology transfer to China is continuing to increase.
At the same time, more than half of the surveyed companies also stated they themselves have benefited from knowledge and experience coming from China. This contradicts the long-held assumption that technological expertise flows predominantly from Germany to China. The results suggest that in many cases, knowledge transfer is mutually beneficial.
Despite Geopolitical Tensions, Prospects for Chinese-Owned German Companies Remain Positive
The overall assessment by Plusminus reporters is largely positive, though this does not mean there are no issues. The bankruptcy of Kiekert, an automotive supplier in North Rhine-Westphalia, vividly illustrates this point. Based in Heiligenhaus, the company had a history of 169 years and was one of the world’s leading manufacturers of door lock systems. In 2012, a Chinese firm acquired it, and production continued in Germany. Last year, the company faced financial difficulties, but promised millions in funding from China never materialized.
Meanwhile, German banks rejected Kiekert’s loan and guarantee applications, partly due to U.S. sanctions against the Chinese parent company. This case demonstrates how geopolitical conflicts and international sanction mechanisms are increasingly affecting German factories.
Despite political tensions, many Chinese-owned German companies remain optimistic about their future and do not see their operations in Germany as risky. More than half of the surveyed companies even said that their German business has become more important since the acquisition. Another third believe their operations have remained stable.
The analysis concludes that neither widespread fears of German companies being systematically sold off nor the belief that Chinese acquisitions automatically lead to growth is universally substantiated. However, cases like Kiekert indicate a shift in focus: today, the concern is no longer just about the investors themselves, but rather about the geopolitical risks that international investments may bring.
Source: DW
Original article: toutiao.com/article/1868697428907016/
Disclaimer: The views expressed in this article are those of the author(s) alone.