German Firms Lift China Investment by One-Third as US Outlays Fall

German companies raised direct investment in China by roughly one-third in the first half of 2026 from a year earlier, the German Economic Institute (IW) reported using Bundesbank data. In the same half-year, German direct investment in the United States fell by nearly two-thirds to about €4.3 billion ($5.0 billion). China overtook the US as the top destination for German outbound investment. Compared with 2024, US-bound investment is down close to 80%. In the five years before the pandemic, German semi-annual investment in the US averaged €15.8 billion. On the €5.6 billion ($6.5 billion) figure, business-news-today and Minute Mirror describe it as the year-on-year increase; BigGo Finance presents it as the H1 2026 total and roughly in line with the 2020–2025 semi-annual average for China. IW economist Jürgen Matthes said German companies have almost no choice but to continue investing in China. IW data released in January 2026 showed 2025 China investment at a four-year high, with more than €7 billion in the first 11 months, up 55.5% from €4.5 billion a year earlier. AHK Greater China released a September 10, 2026 report on German companies and Chinese firms’ internationalization.