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Germany – Deloitte expects more Chinese investments, driving jobs and promoting growth

05 September 2016

Chinese companies are expected to make more acquisitions in Germany as they continue to embark on outbound investment around the globe, an investment guide to Germany produced by Deloitte suggests.

It comments that the long-standing trade and investment partnership between the two countries that has provided a solid foundation for Chinese companies to invest in Germany, and reveals that M&A activities of Chinese investors in Germany have increased significantly since 2010. Over the last 25 years, China has become Germany's second largest export market outside Europe since 2002 and Germany is now China's largest European trading partner.

Many Chinese investors have taken over financially distressed automotive suppliers in Germany, which have subsequently undergone successful restructuring and regained competiveness, Dirk Hallmayr, leader of Chinese Services Group, Deloitte Germany suggests.

"With regard to foreign investment, there are sometimes concerns about job losses and whether the acquired companies will be dissolved with technology being taken away. In fact, foreign investment creates jobs and promotes growth and that is why they are economically important to Germany," said Dirk Hallmayr, leader of Chinese Services Group, Deloitte Germany.

Recently, Chinese investors have shifted their focus from acquiring troubled assets to strategic investment in technology companies. China's home appliance manufacturer Midea offered to take a 95% share in German robotics maker, Kuka, in August.

The automotive suppliers and industrial companies have traditionally been the focus areas for Chinese investment in Europe. However, Chinese investors are also showing growing interest in German Real Estate as it has recently experienced a steady performance, both in residential and commercial property.

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