German Industry Ignores ‘Derisking,’ Invests Even More in China

Financial Times notes that in spite of the geopolitical “diversification/derisking” strategy of the German government, industry investments in China continue to increase. Volkswagen and other companies are shifting focus on production “in China, for China.” In terms of figures, this is shown in the doubling of direct investments from Q1 with €2.4 billion, to Q2 with €4.8 billion. Direct investments in H1 were, at a total of €7.2 billion, already higher than in all of 2023, at €6.5 billion for the year.