Large German companies continue to invest heavily in China

Berlin Investments by European companies in China are massively concentrated in a few corporations. The top 10 European investors in the second largest economy in the world accounted for almost 80 percent of all direct investments from Europe in recent years. This is the conclusion of a study by the Rhodium Group, which was published on Thursday.

It says that European direct investments in China have become increasingly concentrated in recent years, also with regard to the countries of origin. Four countries – Germany, the Netherlands, the UK and France – accounted for an average of 87 percent of total investment value over the past four years.

Among them, Germany stands out as by far the largest investor. In the past four years, German investments accounted for an average of 43 percent of all European investments. In 2021 it was even 46 percent.