German direct investment in China eased in the first half of the year albeit remaining close to its record high in 2022 and increasing as a share of the country's overall investment abroad, according to official data analysed by the IW institute.
Investment in China dropped to 10.31 billion euros in the first half of 2023 from 12 billion euros in the first half of last year, the IW said in an analysis shared exclusively with Reuters.
The data underscores concerns that German firms continue to invest heavily in China despite the government's pleas for companies to reduce their exposure and its sharp cut inOverall German direct investment flows dropped more sharply, to 63 billion euros from 104 billion euros last year, as Europe's largest economy battled recession.
"The trend towards China remains mostly unchanged also this year," said IW analyst Juergen Matthes. "Although the German economy is overall investing much less abroad, new direct investments in China remain nearly as high as before."Reuters Graphics
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