German Firms Increase China Investment as U.S. Outlays Fall, IW Study Shows

German companies increased investment in China by about one-third during the first half of 2026, while investment in the United States fell nearly two-thirds, an IW study found. Firms invested €5.6 billion more in China than a year earlier, reflecting the country’s importance as a sales market and manufacturing base. Investment in the United States dropped to roughly €4.3 billion amid trade tensions and tariffs. The shift has revived concerns that German production and jobs could move toward China further.