Christian Rusche IW-Trends No. 2 6. June 2017 The Activities of Chinese Investors in Germany
Since 2014, China has been investing more abroad than foreign companies have been investing in China. The Chinese government is encouraging foreign direct investment not only to modernize the economy, but also to acquire influence and secure essential resources. In Germany, the activities of Chinese investors have come under increasing criticism, though only a small proportion of Chinese direct investment is directed towards Germany.
Since 2014, China has been investing more abroad than foreign companies have been investing in China. The Chinese government is encouraging foreign direct investment not only to modernize the economy, but also to acquire influence and secure essential resources. In Germany, the activities of Chinese investors have come under increasing criticism, though only a small proportion of Chinese direct investment is directed towards Germany.
Indeed, compared to German companies’ capital stock in China and Hong Kong (around 64 billion euros), at 2.4 billion euros the capital stock of Chinese investors in Germany is relatively low. Chinese firms in Germany are concentrating particularly on mechanical engineering and the automotive industry (including component suppliers). Investment is mostly in the form of takeovers, as this is the best way to secure know-how and simplify entry into a new market. Overall, the benefits of Chinese direct investment in Germany, which consist mainly in the safeguarding of jobs and the opening up of new markets, currently outweigh the drawbacks. However, the danger that the Chinese government will in future be able to exert influence through its state-owned holdings is a real one.
Klaus-Heiner Röhl IW-Policy Paper No. 28 2. December 2021
Start-ups and venture capital in Germany: Does the Future Fund bring new impetus to the start-up culture?
This policy paper shows the development of foundations of new companies and start-ups in Germany and, after a look at the international venture capital markets, presents the Future Fund, with which the German government wants to put start-up financing on a new ...
Start-ups and economic growth in an international comparison
This IW Report analyses the importance of entrepreneurial activity and Venture Capital for economic growth. Potential growth has declined significantly in the highly developed countries in recent years.
This website uses necessary cookies to ensure the operation of the website. An analysis of user behavior by third parties does not take place. You can find detailed information about the use of cookies in our privacy policy.
