Workers assemble cars at a Beijing Benz Automotive Co. Ltd factory, a German joint venture company for Mercedes-Benz, in Beijing.
Report
1 min read

Profits of German investors in China – an empirical survey

A report by Bertelsmann Stiftung, IW, MERICS and BDI

The war in Ukraine has raised concerns in Germany and elsewhere about economic dependence on China. A new report by MERICS, Bertelsmann Stiftung, the German Economic Institute (IW) and the Voice of the German Industry (BDI) examines an area of German economic engagement with China that is often overlooked: profits from direct investment by German companies in China.  

The authors Cora Jungbluth (Bertelsmann Stiftung), Jürgen Matthes, Sonja Beer (IW), Friedolin Strack, Ferdinand Schaff (BDI) and MERICS experts Max J. Zenglein and Gregor Sebastian have analyzed Deutsche Bundesbank data on primary profits and conducted a survey among three dozen German companies.  

They find that there is less economic dependence on direct investments in China than generally expected and that the EU remains by far the largest source of profits from FDI for German companies. 

You can read the executive summary and recommendations in English and the full report (in German) here:

Author(s)
Author(s)