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German investment in China hits record USD12.7bn

German direct investment in China surged 4.3% to a record EUR11.9bn (USD12.7bn) in the last year, marking an increased focus of Germany’s global investment towards China, according to a Reuters report. An analysis by the IW institute using Bundesbank data revealed that China now accounts for 10.3% of Germany’s total foreign investments, the highest share since 2014. Meanwhile, investment in other parts of Asia remained constant at about 8%. This surge in investment comes as Germany’s overall foreign direct investment fell to EUR116bn from EUR170bn in 2022, amid economic challenges. China continued to be Germany’s top trading partner for the eighth consecutive year as of 2023, based on preliminary data.


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