Germany remains leading investment destination for Chinese companies

Chinese companies strengthen their focus on Europe: 43% expect sales growth in Germany, 41% plan to expand their workforce, 30% intend to increase investments

• Germany, Hungary and Poland are the top three destinations for new investments by Chinese companies in Europe: 21% plan to invest in Germany, 18% in Hungary and 12% in Poland.
• Chinese investors increase interest in Germany: 30% are increasing their focus on Germany and the EU; 22% see the EU as an alternative to the US sales market.
• Germany is strategically important: 55% of Chinese companies in Germany value proximity to customers and partners; 44% aim to strengthen their local reputation; 51% manage their European business from Germany.
• Research and development: 27% conduct R&D in Germany; 14% cooperate with German universities and research institutions.
• Interest in German infrastructure package: Interest in Germany’s infrastructure package: 40% see opportunities in the €500 billion program, but most lack concrete plans; 15% plan to work with German partners.
• Focus areas of Chinese companies: digitalization (51%), energy including batteries (48%), automotive with a focus on e-mobility (35%).
• Biggest barriers to investment: 73% cite high labor costs and strict labor laws; 53% highlight regulatory complexity.
• Access to funding remains a challenge: 46% feel disadvantaged with regard to public funding; only 5% feel treated equally to EU competitors.

Chinese companies operating in Germany continue to view the country as their primary investment destination in Europe – despite the growing relevance of Hungary. These are the findings of the “German Chinese Business Confidence Survey 2025”, published today by the China Chamber of Commerce in Germany (CHKD) and KPMG in Germany. The survey, conducted between 12 August and 7 September 2025, examines the business expectations of Chinese companies in Germany.

According to the survey, 41% of the companies plan new investments in Europe – 21% specifically in Germany, followed by Hungary (18%) and Poland (12%). Geopolitical tensions and are further accelerating their shift toward Europe.

Revenue and employment expectations are positive: 43% of Chinese companies in Germany anticipate revenue growth in the coming year, with 22% expecting increases of more than 20%. In addition, 41% plan to expand their workforce, while 42% expect headcount to remain stable. Only 18% expect staff reductions.

Nearly one-third (30%) intend to increase their investments, with 19% planning expansions of 20% or more. A majority (60%) aim to maintain current levels, while only 10% foresee divestments.

Looking ahead five years, 29% expect the investment environment to deteriorate; 13% expect improvement; and 58% foresee a balance of opportunities and risks.

"As long-term strategic investors, Chinese companies create and secure numerous jobs in Germany, assume social responsibility and are committed to sustainable development. They are now an integral part of the German economy. China and Germany should further intensify their pragmatic cooperation to foster innovation and unlock new growth potential – supporting a sustainably competitive German business environment", says LI Dong, President of the Chinese Chamber of Commerce in Germany e. V. and co-author of the study.

In terms of future bilateral collaboration, Chinese companies see the greatest potential in digitalization (51%) and the energy sector, including battery technologies (48%). The automotive industry – particularly e-mobility and smart manufacturing – also remains a strategic focus (35%).

"Chinese companies are investing heavily in AI and e-mobility. There are opportunities for cooperation for the German economy here", says Andreas Glunz (KPMG).

Germany plays a central strategic role: 55% cite proximity to customers and partners as their primary reason for operating in the country. For 51%, Germany functions as their European headquarters. In addition, 44% emphasize the importance of strengthening their brand reputation. 42% use Germany primarily as a sales hub within Europe. 40% rely on the location for market analysis and observation.

Europe is increasingly perceived as a stable and attractive market for Chinese companies: 30% are actively seeking new business opportunities in Germany and the EU, while 22% are positioning the EU as an alternative to the U.S. market.

"Chinese companies are shifting production and supply chains. For Germany as Europe’s largest economy and leading industrial hub, this creates an opportunity to attract new Chinese investment – if the policy framework is right", comments Andreas Glunz (KPMG in Germany).

The German government’s new €500 billion special infrastructure fund is generating notable interest: 40% see potential business opportunities, though most have yet to develop concrete plans. Fifteen percent are exploring partnerships with German firms, and 10% plan to participate in public tenders.

However, concrete investments are still the exception. 15% are looking to cooperate with German partners; 10% want to participate in public tenders.

China has extensive experience with complex infrastructure projects and is ready to bring this expertise into partnerships with Germany. With fair and transparent conditions, high-quality projects can be developed that create long-term value for both sides", says Dr. CHEN Longjian (CHKD), Executive President of the Chinese Chamber of Commerce in Germany and co-author of the study. 

High labor costs and strict labor regulations remain the most significant challenges, cited by 73% of respondents. Regulatory complexity (53%) and bureaucratic hurdles (27%) also weigh on investment decisions.

Nearly half (46%) feel disadvantaged when applying for public funding; only 5% feel treated on par with EU competitors.

"Fair and transparent conditions are crucial not only for each individual company, but also for the future of the entire Sino-German economic relationship. Chinese companies are ready to invest — provided German policymakers create the right conditions", comments Dr. CHEN Longjian (CHKD), Executive President of the Chinese Chamber of Commerce in Germany and co-author of the study.

61% of Chinese companies support simpler and faster administrative procedures. 53% call for clearer and more reliable review processes for Chinese direct investments. 38% each call for improved visa and work-permit procedures, as well as greater transparency in funding and subsidies.

KPMG AG Wirtschaftsprüfungsgesellschaft
Katrin Häbel
+49 69 9587 4228
khaebel@kpmg.com | www.kpmg.com/de

The Chinese Chamber of Commerce in Germany e. V.
Xiaowei Chen, Head of Press and Public Relations Department
+49 30 20917522
xiaowei.chen@chk-de.org I www.chk-de.org/de

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