UPDATE ON ‘TARGETS AND IMPACTS OF CHINESE DIRECT INVESTMENTS IN GERMANY’
UPDATE ON ‘TARGETS AND IMPACTS OF CHINESE DIRECT INVESTMENTS IN GERMANY’

Summary/Abstract: The This paper compares findings from two scholarly investigations conducted in 2019 and 2022, exploring the logic and financial repercussions of China's direct investments in Germany. The initial study, undertaken in 2019, aimed to differentiate Chinese investments from other international investments within Germany, examining hypotheses concerning aspects like corporate expansion, financial success, and exposure to risk. Through the application of regression analysis, this research did not uncover significant disparities in these parameters among firms acquired by Chinese entities compared to other international investors. Notably, it observed a tendency among Chinese investors to favour transactions involving assets, frequently associated with companies facing insolvency. In 2022, a subsequent investigation utilized both descriptive and multivariate statistical methods to reassess these elements. Aligning with prior results, traditional financial measures such as corporate growth, profitability, and risk did not substantially affect the probability of acquisitions by Chinese investors. The uniformity of these outcomes in both studies suggests that solely financial indicators do not fully account for the decision-making process in Chinese investments in Germany.

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