German Firms Boost China Investment

German companies increased their investment in China by a third during the first half of 2026 while significantly reducing outlays in the United States, according to a recent IW study based on Bundesbank data.

Yongding Pagoda stands against the rising sun and Beijing skyline, with skyscrapers in the Central Business District, including CCTV headquarters, seen in the distance, in Beijing, China, September 3, 2026. REUTERS/Maxim Shemetov

Germany companies boosted investment in China by a third to €5.6 billion in the first half of 2026. The shift comes as German capital pulls back sharply from the United States. The reallocation highlights growing divergence in German corporate strategy across the world's two largest economies.

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