Full Breakdown
Chinese Firms Overtake U.S. as Germany's Top Source of Foreign Direct Investment in 2025
5/23/2026, 12:10:57 PM
Chinese Investment Surpasses U.S. as Germany's Leading FDI Source
In 2025, Chinese companies launched 228 greenfield and expansion projects in Germany, exceeding the United States, which recorded 206 projects. This marks the first time since 2017 that China became the single largest source of foreign direct investment (FDI) projects in Germany, according to the 2025 Foreign Companies in Germany Investment Report published by Germany Trade & Invest (GTAI).
Recent Trends and Investment Climate
Germany recorded 1,564 foreign investment projects in 2025, a 9.3 % decline from the previous year. The European Union contributed 33 % of total FDI, remaining the largest regional bloc. GTAI noted that the drop in project numbers was moderate compared with the EU’s roughly 18 % decline, highlighting that Germany’s 9.3 % decline is comparatively modest.
Geographic Shift and Sector Priorities
Chinese projects rose 14.6 % year-on-year, while U.S. projects fell 10 %, reshaping the geographic mix of new investment. German officials have highlighted automotive, machinery, chemicals, energy and electromobility as priority sectors for Chinese capital, aligning with broader efforts to attract high-value manufacturing and green-technology investments.
Official Statements from German Leaders
Chancellor Friedrich Merz, speaking at a February business forum in Beijing with Premier Li Qiang, said Germany seeks Chinese investment to create jobs and support strategic sectors. GTAI managing director Achim Hartig warned that tariffs and trade conflicts are heightening caution among investors, though he affirmed Germany remains a robust business location. Merz also noted that his administration had spent months improving Germany’s investment climate, aiming to make the country more attractive for foreign capital.
Criticism and Trade Uncertainty
Hartig’s comment underscores broader apprehension that ongoing tariff negotiations between the EU and China could curb future investment, making current caution a potentially temporary condition. Hartig emphasized that such caution stems from tariff and trade-conflict uncertainties, which could affect the pace of future projects.
Verbatim Quotes
- “International uncertainties such as tariffs and trade conflicts mean that companies are more cautious at present about investment decisions,” — Achim Hartig, GTAI managing director
- “We want Chinese investment in Germany. We want jobs in Germany through Chinese investment,” — Friedrich Merz, German Chancellor
Outlook
Merz’s call for Chinese firms to expand in targeted sectors suggests Germany will continue courting Chinese capital despite trade uncertainties. The government plans to refine its investment framework, including R&D incentives, while monitoring tariff developments to gauge the sustainability of the investment surge. The government aims to sustain early results by focusing on automotive, machinery, chemicals, energy and electromobility sectors.
