German Firms Lift China Investment As US Outlays Fall
PUBLISHED Sep 13, 2026, 5:23 AM ET
German companies increased their investment in China by approximately one-third during the first half of 2026, while sharply scaling back financial outlays in the United States, according to a study published by the German Economic Institute. Based on an analysis of German central bank data, firms invested 5.6 billion euros more in China compared to the same period in the previous year. Conversely, direct investment in the United States plummeted by nearly two-thirds down to about 4.3 billion euros. Researchers attributed the divergence to escalating trade tensions and tariffs implemented in the United States. Analysts noted that German enterprises face limited alternatives to maintaining a presence in China due to its vital consumer market and low production costs driven by state subsidies and an undervalued currency. Juergen Matthes of the German Economic Institute warned that these dynamics are shifting production and jobs from Europe to Asia, prompting calls for the European Union to implement countervailing trade measures.
By Neha R. | JQJO News
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Left: Emphasize risks of protectionist tariffs damaging international economic alliances. Center: Report objective capital flow statistics and institutional economic research findings. Right: Focus on national competitiveness and trade defense against foreign market subsidies.
German Economic Institute published study data on foreign direct investments. https://live.euronext.com/en/financial-news/german-firms-lift-china-investment-us-outlays-fall-iw-study-shows
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German firms lift China investment as US outlays fall, IW study shows
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