In the first 10 months of 2011, 123 FDI projects have been initiated in China by German investors; the highest annual total on record. This means that China is closing the gap on the US, which has historically received the most FDI investments from German-based companies. In 2010 the US accounted for 71 more projects that China, but in 2011 so far, the US has received just 38 more.

German investors into China in 2011 include machine tool manufacturer Trumpf, which plans to expand manufacturing capacity at its plant in Taicang. The expansion is set to be completed in the first half of 2012 and increase production capacity by 50%.


Two other BRIC (Brazil, Russia, India and China) economies have gained favour with German investors in 2011. With 74 and 56 projects, respectively, India and Russia have proven more popular destinations than France, which in 2010 received the third most projects from German-based companies, with 534 projects, compared to India’s 525 and Russia’s 527. This year France ranks fifth.

With 30 FDI projects recorded in 2011, the fourth BRIC economy Brazil, ranks 17th most popular among German investors. This is already the second highest annual total for Brazil when it comes to German FDI, with two months of the year still remaining.