BERLIN — Chinese investment was increasing rapidly in Germany and covering various sectors from manufacturing to cultural exchange, said a Chinese official in a recent interview with Xinhua, suggesting newcomers localize themselves when running business abroad.
In the first quarter of 2015, Chinese direct investment in Germany amounted to $210 million, up by 246 percent from the same period of previous year, data from China’s Commerce Ministry showed. In 2014, China became the biggest investing country in Germany with a record 190 investment projects.
“Chinese investment in Germany is rocketing up in both terms of project numbers and investment values,” said Wang Weidong, the Commercial Counselor of Chinese Embassy in Germany.
According to him, Chinese investment in Germany covered various sectors including finance, aerospace, telecommunication, steel, renewable energies, restaurants, tourism and cultural exchange.
Currently, around 2,000 Chinese companies were running business in Germany, its biggest trading partner in Europe. Among them were traders, manufacturers, as well as service providers.
Wang said merger and acquisition (M&A) was the main strategy that Chinese investors favored in recent years. After acquiring, most Chinese companies kept the German management and workers.
A survey by Chinese Chamber of Commerce in Germany last year showed that despite high labor costs, Chinese companies were willing to hire German employees in order to get better involved in local business environment and market.
“Localization is a must for Chinese companies to succeed in Germany,” Wang said, adding that newcomers should also attract local talents and get adapted to local culture when expanding their business here.
He revealed that some Chinese enterprises failed in their attempts to enter Germany in recent years due to their insufficient preparation for the differences in laws and business philosophies.
“Details should be dealt with properly,” Wang said, suggesting Chinese companies consult their tax and law advisers and get better knowledge about the German market before they make investing decisions.