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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