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More than ten percent of German direct investments flow to China

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Published: February 15th, 2024,
Last updated: May 28th, 2025

Volkswagen Hefei
Volkswagen’s new plant for battery systems in Hefei, Anhui will start production at the end of 2023.

German direct investments in China have reached a record level despite calls for greater diversification. This is according to calculations by the German Economic Institute (IW) based on figures from the Bundesbank. In 2023, direct investments increased by more than four percent, totaling 11.9 billion euros.

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