German firms' investments in China boomed in 2025 on US trade war worries

FILE PHOTO: A Volkswagen ID. EVO electric vehicle (EV) is displayed during a media day for the Auto Shanghai show in Shanghai, China April 23, 2025. German companies ranging from BASF and Volkswagen to Infineon and Mercedes-Benz remain heavily dependent on the Chinese market, where most of the world's cars and chemicals are sold. - Reuters

BERLIN/FRANKFURT: German companies' investments in China hit a four-year high in 2025, according to data compiled for Reuters, underscoring how US President Donald Trump's trade war is pushing industries and governments to boost business ties elsewhere.

The data, from the IW German Economic Institute and previously unreported, showed investments in China climbed to over seven billion euros (US$8 billion) between January and November last year, up 55.5 per cent from the 4.5 billion euros in 2024 and 2023.