ANY increased protectionist measures against China by the European Union will have a damaging impact on economies such as Europe, said Ola Kallenius, chairman of the board of management of Mercedes-Benz Group.

Kallenius’s comments echo those of a wide range of German and European businesses. Judging from a series of reports and data released recently by the German government, think tanks and chamber of commerce, China-Germany investment cooperation has not been affected by the “de-risking” sermon.

While some politicians in the United States and some other Western countries are clamoring for “de-risking” in China, German companies are continuing to increase investment in China and tap into the Chinese market.

The German Economic Institute recently pointed out in a report based on data from the German central bank that in 2023, direct investment from Germany to China reached a record high of 11.9 billion euros (US$12.9 billion), increasing 4.3% compared with the previous year.

According to the report, German companies’ investment in China over the past three years roughly equaled the amount from 2015 to 2020. Additionally, in 2023, Germany’s investment in China accounted for 10.3% of its total overseas investment, the highest level since 2014.

Data released by the Federal Statistical Office of Germany in mid-February also showed that in 2023, the trade volume between Germany and China stood at 253.1 billion euros, with China being Germany’s largest trading partner for the eighth consecutive year.

The author of the report from the German Economic Institute, Jurgen Matthes, believes that the data indicate that large German companies still see China as a growing market and plan to expand their business in China to hedge against the escalating global trade tensions.

The German Chamber of Commerce in China released its annual business confidence survey for 2023/24 in January, with responses from 566 member companies. According to the report, over 90% of the surveyed companies plan to continue establishing themselves in the Chinese market, and more than half of them plan to increase their investments in China over the next two years. (Xinhua)