Record EU Investments in the Chinese Market Driven by Audi, BASF, and German Car Makers
Record EU Investments in China
Despite political leaders advocating to de-risk economic ties, EU businesses' greenfield investments in China surged to a record-breaking US$3.9 billion in the second quarter of 2024.
German Automotive Sector Drives Investment
- The investments included major players like Audi, BASF, Volkswagen, and BMW.
- Greenfield investments reached approximately €3.6 billion (US$3.9 billion) from April to June.
- German companies represented 57% of the total evident commitment, in spite of increasing trade tensions.
Geopolitical Context and Trade Tensions
As the European Commission initiates tariffs on Chinese electric vehicles, this creates a complicated environment for German manufacturers and intensifies automotive sector competition.
- EU tariffs range significantly, impacting brands like Tesla and SAIC Group.
- The German Association of the Automotive Industry opposes these tariffs, citing risks to global trade.
The Challenge for German Companies
With Chinese competition intensifying, car manufacturers are adjusting operations. Volkswagen plans to shut three plants, while Audi halts EV production in Brussels, citing market share drops in China.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.