Germany: Chinese Investments In Germany

Last Updated: 4 August 2017
Article by Shanda Consult Ltd

Originally published 13th June 2017

Chinese overseas investments in Europe and especially in Germany have grown exponentially in the past years. 2016 was a record-breaking year in terms of deals and volume transaction with respect to Chinese mergers and acquisitions. China's outbound M&A grew by 246%, 3.5 times the previous record year in 2015.

Among the European countries Germany was/is the most prominent target for merger and acquisitions for Chinese investors.

Germany's strong industrial manufacturing, chemical, renewable energy, automotive industries and computer hardware companies offer attractive investment opportunities for Chinese investors who are seeking for growth, technical know-how and intellectual property for enhancing their existing products.

Chinese investors can utilize German acquisitions as a 'gateway to the European market', to sophisticated technology and to local management expertise, while German companies gain access to financial support and access to the Asian markets. The production relocation to China can substantially lower the production as well. 

Furthermore, even after the takeover, many German companies can maintain their independence by keeping the management control since most of the Chinese investors do not insist on complete restructuring. 

This creates win-win situations for both sides.

German technological know-how

One of the main reasons of Chinese investments in Germany is the German technological know-how and expertise.

With German company M&A, Chinese investors can gain access to German technological know-how and enhance their products. In addition, they can expand their product portfolio and secure strategic bridgeheads in Europe.

Germany is a very attractive place of business for Chinese Investors. In 2016, 58 German companies were acquired by Chinese investors, spending 11,6 billion Euros. The year before the number of acquisitions was 37 and in 2014 only 30.

Electronic Industry

Many Chinese electronics companies are investing in R&D capacities in Germany. Huawei, a global leading Chinese information and communication technology solutions provider is currently building its new European R&D centre in Munich to better understand their German client's needs. In its growth strategy Huawei was based on joint ventures and on cooperation with German companies like Motorola, Symantec, Siemens and the German Telekom. To protect its technical know-how Huawei focused primarily on the application of intellectual property rights in Europe (30% in Germany) and in the US. Germany is the third most attractive investment location for Huawei after China and the US.

Chinese investors are also interested to buy established brands and technology (e.g. Sanhua Group – acquisition of Aweco) or to invest in young but rapidly growing technologies (e.g. Hytera – takeover of Rohde & Schwarz division).

Industrial firms

Especially state-owned enterprises have shown high interest in the German Engineering Industry and to access to high-tech technology.

The state owned Dalian Machine Tool Group, one of the world's largest tool manufacturing firm with focus on milling machines has acquired the Swabian F. Zimmermann GmbH in 2004 in order to enhance their products.

State-owned Harbin Measuring & Cutting Tool Group (HTMC) specialised in measuring and cutting tools, overtook the Swabian Kelch GmbH a Europe-wide leading company in the field of adjusting devices and precision tools in order to further develop itself technologically.

As part of their strategic development, the three major Chinese machine builder giants, XCMG, Zoomlion and Sany Group invested in German technology and market leader companies as well.

Sany Group overtook the German concrete pump manufacturing company, Putzmeister which is technology leader in its own. XCMG has acquired the majority of Schwing, a pump manufacturer from Nordrhein-Westfalen and Zoomlion bought the German crane manufacturer, JOST Cranes.

Chinese companies are willing to pay high very amount of money for the German high-tech knowledge.

The Industrial robot manufacturing company from Augsburg, KUKA AG was bought by MIDEA CO LTD for 4,6 billion Euro.

Krauss-Mafei Group GmbH the famous machine builder company from Munich was bought by ChemChina AGIC Gr., Gouxin Intl. Co. Ltd., for 1 billion Euro.

EEW fr. Waste GmgH a garbage incineration plant was bought by Bejing Enterpises Holdings Ltd. for 1,6 billion Euro.

Renewable energy

Germany is still one of the leading nations in the field of green energy development. It is favoured among Chinese investors as well due to their experience and innovative technology.

A prime example in this field is the acquisition of Solibro, a leading company in the field of innovative and forward-looking CIGS-technology. A further example is the takeover of Vensys Energy GmbH, a leading geared wind turbines manufacturer company which was overtaken by Goldwind in 2006. With the acquisition of VENSYS, Goldwind could better compete against the market leader giants Siemens and Vestas, who determined the market.

All the above-mentioned company acquisitions had positive outcome. However, it is important to mention that there are challenges, especially lingual and cultural differences, for both sides. To be successful on the long term both sides must overcome on lingual and cultural differences.

Shanda Consult is specialised in consultancy regarding project-based investments and as a partner in bringing together investors and investment projects. We have an active investment consultancy practise in Germany, thus we can assist Chinese investors in identifying the right target, to conduct proper due diligence, and to overcome language and cultural barriers.

For a personalised consultation for your business investment needs in Germany, please feel free to contact us.


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.