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  • NEWS Desk Global

GERMAN INVESTMENT IN CHINA RISES TO RECORD HIGH




German direct investment in China soared by 4.3% to reach a historic peak of 11.9 billion euros last year, marking an increase in its share of the country's overall investment abroad. This data highlights growing apprehensions that German companies persist in making significant investments in China, despite government appeals for them to curtail their exposure to the country.

Moreover, it underscores concerns raised by the government's substantial reduction in investment guarantees for China. German companies have invested as much in China in the last three years as in the previous six years. Still, German investments in China in the last four years were financed entirely by reinvested profit and companies have also withdrawn capital, painting a more nuanced picture. The proportion of German firms exiting the Chinese market or considering doing so has more than doubled to 9% in the last four years.

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