(Yicai Global) May 24 -- Chinese companies ranked fourth behind the United States, Switzerland, and the United Kingdom for the number of investment projects in Germany last year, according to a new report.
Chinese firms invested in a total of 141 projects in Germany in 2022, the report by investment promotion agency Germany Trade & Invest showed yesterday. In 2021, the figure was 149.
In terms of market segments, Chinese companies mainly invested in pharmaceuticals and biotechnology, machinery and equipment, information and communications technology and corresponding software, energy, minerals and metals, the report showed yesterday.
Germany remains the most popular investment destination for Chinese companies in Europe, said Thomas Bozoyan, the report’s author and a GTAI official.
Investment by Chinese businesses in Germany amounted to EUR1.5 billion (USD1.6 billion) in 2022. Svolt Energy Technology alone invested EUR900 million (USD970.2 million) in the state of Brandenburg, Bozoyan noted.
Svolt, which makes vehicle batteries and energy storage systems, announced the construction of a battery cell plant for the European market in Lauchhammer, Brandenburg. It will be Svolt’s second overseas factory and the first to produce battery cells.
Bozoyan also predicted that last year’s investment will create 4,500 jobs, up 15 percent from the figure in 2021.
In 2022, China-Germany bilateral trade tallied around EUR297.9 billion, an jump of 21 percent from 2021, per data disclosed by Germany’s federal statistical office in February. China was Germany’s most significant trading partner for the seventh straight year.
Germany imported about EUR191.1 billion worth of goods from China in 2022, a 33.6 percent annual increase. Its exports to China amounted to about EUR106.8 billion, a 3.1 percent gain.
Most of the Chinese firms focus on sales and marketing support in Germany, making up 45 percent of the total, the report revealed. The proportion of those engaged in manufacturing and R&D, the operation of European headquarters, and business services was 19 percent, 10 percent and 9 percent, respectively.
According to the report, sales and marketing support accounted for 45 percent of Chinese companies' business in Germany; manufacturing and research and development 19 percent; the operation of European headquarters 10 percent; and business services 9%.
Editors: Shi Yi, Peter Thomas