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PRODID:-//DIIHK//Events//FA
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UID:event-985@diihk.com
DTSTAMP:20260901T111721Z
DTSTART:20250515T094707Z
DTEND:20250515T094707Z
SUMMARY:Foreign Investment in Germany Declines as China Overtakes the U.S.
DESCRIPTION:Foreign Investment in Germany Declines as China Overtakes the 
 U.S.				\n		A study by consulting firm EY reveals a sharp drop in foreign
  investment in Germany\, with China now emerging as the country’s large
 st investor.According to a new report by consulting firm EY\, the number 
 of foreign investment projects in Germany in 2024 reached 608\, marking a
  17 percent decline compared to the previous year and the lowest level si
 nce 2011. These projects include the establishment of new sites and job o
 pportunities but exclude financial transactions or company acquisitions.\
 nAmong investing countries\, the United States saw the largest retreat. T
 he number of investment projects by American companies in Germany dropped
  27 percent to 90 projects\, while the overall decline across Europe was 
 only 11 percent. As a result\, Germany experienced the steepest drop in a
 ttracting U.S. investment among the main European destinations.\nMeanwhil
 e\, China\, with 96 new projects—a slight 3 percent decrease—has beco
 me Germany’s largest foreign investor for the first time. The report no
 tes that Germany remains the most popular destination for Chinese investo
 rs in Europe.\nEY’s study shows that foreign investment projects in Ger
 many have nearly halved since 2017\, suffering a 46 percent decline. In c
 omparison\, France and the UK\, despite decreases\, still maintain a stro
 nger position in attracting foreign capital.\nHenrik Ahlers\, CEO of EY G
 ermany\, warned that Germany is losing its status as a prime investment d
 estination. He cited high energy and labor costs\, heavy taxation\, compl
 ex bureaucracy\, and lagging digitalization as key factors deterring fore
 ign investors.\nSource: DPA\, Handelsblatt\, Spiegel
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