German investment in China on the rise according to CIPA report

A study by the China International Promotion Agency (CIPA) shows how German investment in China is on the rise and uses data from Orbis Crossborder Investment.

The 2019 report "German Investment in China - Changing Opportunities and Trends" was published by the German office of the CIPA. The Frankfurt-based branch serves as a platform for investment promotion between China and Germany and provides information, consultation and investment services to the Chinese government, enterprises, industrial parks and organizations.

The study looks at M&A projects involving more than 10% foreign ownership and includes acquisitions, mergers, joint ventures and minority stakes. Using data from Orbis Crossborder Investment, the study found that the number of German M&A projects in China grew from just 4 in 2014 to 28 in 2018.

Joint ventures saw a noticeable increase during this period. The report attributes these findings to the fact that local partners were valuable for German companies accessing the Chinese market, especially for first-time investors.

There were 140 German greenfield projects in China in 2018, almost doubling from the previous year.

Top 5 cities in China for German greenfield projects since 2013 were:

• Shanghai with 138 greenfield projects
• Beijing, 36
• Guangzhou, 25
• Nanjing, 22
• Shenzhen, Changzhou and Suzhou with 15 each

Top 5 industries ranked by number of projects and jobs created were:

• Chemicals, petroleum, rubber and plastic
• Industrial, electric and electronic machinery
• Transport manufacturing
• Textiles and clothing manufacturing
• Business services

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