Germany top European investment country for Chinese firms

BERLIN - Chinese entrepreneurs labeled Germany as the most attractive investment destination in Europe, considering more acquisition and joint ventures with German companies, a latest study showed Wednesday.

The report of consulting firm Ernst & Young, based a survey of 400 executives of medium-sized and large Chinese firms from different industries, indicated that one in four Chinese managers viewed Germany as one of the three most appealing locations for investment worldwide.

The other two were China itself, with 61 percent of votes and the United States, with 29 percent.

Within Europe, Germany wins 63 percent of responses, ahead of France with 13 percent, the report said.

Among Chinese companies that are planning to invest in Germany, Europe's strongest economy, 9 percent of them are expecting business acquisitions, while 56 percent preferred joint ventures.

Ernst & Young said Chinese companies, with substantial funds in hands, are "full to bursting" for the expansion in Germany. As for the particular sectors, 57 percent said they are interested in mechanical engineering, with automobile industry in the second place.

"German companies and brands are regarded highly in China, which shapes the image of Germany as an investment location from the perspective of Chinese companies," said Yi Sun, a partner at Ernst & Young and head of the China business services in Germany, Austria and Switzerland.

"The German mentality with diligence and punctuality earns high reputation among Chinese companies," Sun said, adding that Germany's well-developed infrastructure, excellent research and development system of universities and various institutes and large potential markets also attract Chinese companies.

In March, the Berlin-based foreign trade and investment promotion agency Germany Trade & Invest reported that China became the biggest foreign investor in Germany in 2011, with 158 greenfield investment projects, ahead of the United States and Switzerland, which had 110 and 91 projects respectively.