Germany attracted international business projects worth €34.8 billion in 2023, according to the annual Foreign Direct Investment (FDI) study by Germany Trade & Invest (GTAI). This figure includes greenfield investments and expansions, but does not include any mergers or acquisitions. Compared to €25.3 billion in 2022, the annual growth rate for 2023 reached 37.5%, with the original number of FDI projects totaling 1,759. There are 11 projects involving planned investments of more than €500 million. Of these, 8 are greenfield projects, and 3 are expansion projects within Germany. There are 8 projects with planned investments exceeding one billion euros.

In 2023, Germany announced significant FDI projects in areas such as digitalization, healthcare and life sciences, energy and resources, electronics and automation, and mobility and logistics. The main source country was the United States, followed by Switzerland, China, the United Kingdom, the Netherlands, and France. Thirty-six percent of FDI projects came from EU countries, and 28% from non-EU European countries.

In 2023, Chinese companies' investment activities in Germany reached a new high since 2017. According to the "2023 Report on Foreign Companies' Investment in Germany" released by the German Federal Foreign Trade and Investment Agency (GATI), last year there were 1,759 foreign investment projects in Germany, with an investment volume of about 34.8 billion euros, a year-on-year increase of 37.5%, roughly the same as the number in 2022. Among them, Chinese companies' investment projects numbered 200, with 8 large-scale investment projects exceeding 1 billion euros, amounting to 28 billion euros, ranking third after the United States and Switzerland.

Chinese companies' interest in investing in Germany has increased significantly, especially in the field of renewable energy, where the number of projects is about three times that of 2022, accounting for about one-fifth of the total number of projects. Other main investment areas include machinery manufacturing and electronic products. In the field of machinery manufacturing, the number of investment projects by Chinese companies increased by 52% year-on-year, and in the field of electronic products, the number of investment projects doubled.

The fields in which Chinese companies are most engaged in business in Germany are marketing and sales, accounting for 45%; followed by production and R&D, accounting for 22%; in addition, 12% of companies have established their European headquarters in Germany. This shows that Chinese companies' investment in Germany is not only concentrated in specific industries but also actively expanding business scope and market influence.

The German side also has a positive and open attitude towards investment by Chinese companies. In 2023, the bilateral trade volume between China and Germany was 253.1 billion euros, and China has been Germany's largest trading partner since 2016. An analysis by the German Economic Research Institute (IW) shows that in 2023, Germany's direct investment in China increased by 4.3% year-on-year, reaching 11.9 billion euros, accounting for 10.3% of Germany's total overseas investment, the highest level since 2014. German companies' investments in China are mostly production-oriented projects with large investment amounts and high technological content, involving various fields such as automotive, chemical, power generation equipment, transportation, steel, and telecommunications.

The "2023/24 Business Confidence Survey Report" released by the China Germany Chamber of Commerce shows that more than 90% of German companies remain committed to the Chinese market, 78% of surveyed companies expect their industry to continue to grow in the next five years; 54% of surveyed companies plan to increase investment, of which 79% believe that increasing investment is a necessary condition to maintain competitiveness in China.

In 2023, Chinese companies' investment activities in Germany showed a positive growth trend, and German companies also continue to be optimistic about the Chinese market, willing to increase investment to maintain competitiveness. Economic exchanges and cooperation between China and Germany show strong vitality and potential in investment and trade.

ARTxDIGI is a professional organization dedicated to providing international services for Chinese companies, especially with extensive experience and professional services in the German market. We offer a one-stop solution for Chinese companies looking to expand to Germany. Our team consists of experienced legal advisors, business experts, and administrative support staff who can assist clients in smoothly resolving various issues encountered when doing business in Germany.

In terms of company registration, we provide a full range of services from preliminary consultation, market research to final registration and establishment, ensuring that your company can operate legally and efficiently in Germany. For Chinese companies that need to dispatch employees to work in Germany, we offer professional human resource services, including employee recruitment, training, and dispatch, as well as related work visa and residence permit applications.

In addition, we also provide exhibition operation services, helping clients participate in important industry exhibitions in Germany, and enhance the international influence of the corporate brand through professional exhibition planning and operation. Our services also include docking with local governments, industry associations, and business partners in Germany, providing more business opportunities and market expansion possibilities for your company.

By choosing ARTxDIGI, you will gain a reliable partner. We are committed to helping your company succeed in the German market.