German companies increase China investments to four year high amid US trade pressure
German corporate investment in China jumped over fifty-five percent in 2025. Firms are shifting capital as a strategic response to new American trade tariffs.
Insights:
German companies have significantly expanded their footprint in China 
CNover the past year, with direct investments rising to more than 7 billion euros between January and November 2025. This figure, derived from Bundesbank data analyzed by the IW German Economic Institute, represents a sharp 55.5 percent increase from the 4.5 billion euros recorded in both 2024 and 2023. The 2025 total marks a four-year high for German capital flow into the region and exceeds the historical average of 6 billion euros per year maintained between 2010 and 2024.
CNover the past year, with direct investments rising to more than 7 billion euros between January and November 2025. This figure, derived from Bundesbank data analyzed by the IW German Economic Institute, represents a sharp 55.5 percent increase from the 4.5 billion euros recorded in both 2024 and 2023. The 2025 total marks a four-year high for German capital flow into the region and exceeds the historical average of 6 billion euros per year maintained between 2010 and 2024.
