Recent research by the German Economic Institute (IW) showed that Germany’s direct investment in China in the first half of the year reached a historic high. Between January and June this year, German companies directly invested 10 billion euros (US $10 billion) in China. In the past, the half year record was 6.2 billion euros.
The German government authority, the Federal Ministry of Economic Affairs & Energy, is working to modify its China policy. It will tighten the guarantee for companies’ overseas investments.
However, Germany’s automobile industry is moving in the opposite direction. Former CEO Herbert Diess of Volkswagon insisted that China’s business is important to Germany. The Chairman of Daimler AG said that sales from China accounted for one third of Mercedes-Benz sales. On June 28, Audi and its Chinese partner First Automobile Works (FAW) officially kicked off a new energy vehicle project with an investment of over 35 billion yuan (US $ 5 billion) in Changchun City, Jilin Province. On June 23, the BMW Group launched its new plant “Rida Plant” in Shenyang City, Liaoning Province. The project, costing RMB 15 billion, is by far the largest single investment by BMW in China’s market.
Source: Deutsche Welle, September 7, 2022