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.