[Opinion] Chinese Firms Need to Change Investment Approach in Germany Amid Tougher Regulatory Environment
(Yicai) Jan. 19 — 2016 marked the peak of Chinese business investment in Germany, with 45 mergers and acquisitions, including the acquisition of industrial robot manufacturer Kaku by Chinese home appliance giant Midea Group.
A decade later, Germany’s investment environment has become a lot more challenging, and the risks faced by Chinese firms going global are increasing. Against this backdrop, their investment logic in Germany should shift from scale expansion to more meticulous cultivation of value.
Since 2016, Germany has continuously revised its Foreign Trade and Payments Ordinance, known as AWV, to strengthen the security review mechanism for foreign direct investment. This change did not occur in isolation but was carried out…
