7 months ago
German Investment in China Surges to Four-Year High
German companies are investing a lot more money in China.
In 2025, they put in over 7 billion euros, which is a big increase from the previous year.
This is happening because the U.S. has been putting tariffs on European imports, so German companies are looking to China as an alternative.
They also want to be more independent in case there are any big trade problems.
Many big German companies, like Volkswagen and BASF, are doing this.
The German government is also trying to make new trade deals with other countries while keeping good relations with China.
German investments in China reached 7 billion euros in 2025, a 55.5% increase from 2024.
U.S. trade policies and concerns about geopolitical conflicts are driving this shift.
China reclaimed its spot as Germany's top trading partner in 2025.
German companies are expanding operations in China to strengthen local supply chains and reduce risks.
The investment figure for 2025 exceeds the 6 billion euro average for the period 2010 to 2024.
- Who
- German companies and the German government
- What
- Investments in China
- Where
- China
- When
- Between January and November 2025
- Why
- Due to U.S. trade policies and concerns about geopolitical conflicts
Key facts
- Investment Amount
- 7 billion euros
- Percentage Increase
- 55.5%
- Previous Year Investment
- 4.5 billion euros
- Top Trading Partner
- China
- Key German Companies
- BASF, Volkswagen, Infineon, Mercedes-Benz, ebm-papst
- Investment Period
- January to November 2025
- Average Investment (2010-2024)
- 6 billion euros
Quotes
Juergen Matthes
Head of international economic policy at the IW German Economic Institute
“Many companies say: 'if I'm only producing in China for China, I'm reducing my risk of being affected by possible tariffs and export restrictions'.”
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“German companies are continuing to expand their activities in China – and at an accelerated pace.”
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Volkswagen spokesperson
Spokesperson for Volkswagen, Europe's largest automaker
“China is thus helping to further strengthen the Group's global presence and competitiveness.”
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ebm-papst
German fan and motor maker
“This model has proven to be an important anchor of stability, especially in times of tariffs and geopolitical tensions.”
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