Reuters exclusively reported that the volume of investment guarantees provided by the German government to companies investing in China has collapsed this year, a government document showed, highlighting the impact of Berlin’s efforts to end over-reliance on the country.
Business & Finance
German guarantees for China investments plummet
23 August 2023, 5:25 pm 1 minute
Market Impact
Only 51.9 million euros ($56.26 million) in guarantees have been issued so far this year, according to the document seen by Reuters, less than a tenth of the 745.9 million euros in guarantees issued over the whole of last year. Companies can invest without government guarantees, meaning real changes in levels of German FDI in China may have fallen by less. But export volumes are suggestive: Germany sold 6.2% less by value to China in July compared with last year, at a time when sales to the U.S. jumped 10.4%.
Article Tags
Topics of Interest: Business & Finance
Type: Reuters Best
Sectors: Business & Finance
Regions: AsiaEurope
Countries: ChinaGermany
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
