Rising fortunes

China has moved into the number one spot as the preferred investment location for German industry, according to a survey conducted by the German Chambers of Commerce (DIHK).

The body's chief of foreign trade, Volker Treier, said in Berlin on Wednesday that 43 percent of German companies would be seeking to invest abroad this year in a bid to expand their sales and manufacturing capabilities in the world’s most populous nation.

"In light of the dynamic development of business in Asia and Latin America, German firms are focusing more on markets beyond Europe," the survey said. "China is destination number one."

The figure is 6 percent higher than last year and meant China displaces Europe as the most popular German investment destination for the first time.

Reaching further afield

Latin America also continued to attract attention from German industry, the DIHK survey showed, particularly in the automotive industry.

Overall, the survey painted an increasingly internationalized picture of German industry. This year, German businesses are to make more foreign investments than ever before, DIHK said.

The chief motive for this was willingness to push into new markets rather than cost-cutting, which was the reason behind only 22 percent of foreign investments, reported DIHK, adding that this has been a trend going back to 2008.

The body also said that the deadly earthquake and nuclear crisis in Japan and unrest in the Arab world had not significantly impacted German trade, and that reconstruction in Japan could in fact present an opportunity for German businesses.

Author: Darren Mara (AFP, dpa)
Editor: Rob Turner