A recent DIHK survey of about 1,700 manufacturers, published Thursday, shows a noticeable change in the preferred destinations for planned German foreign investment. The portion of firms indicating they plan to invest in the United States fell to 44% - a decline of four percentage points compared with DIHK's 2025 survey - marking the first material drop since the Covid-19 pandemic, according to the report.
The survey also recorded growing interest in parts of Asia. China was named as an intended investment destination by 34% of respondents, up from 31% in the prior survey. Interest across the wider Asia-Pacific region rose more sharply, climbing five percentage points to reach 26% of firms.
Volker Treier, head of foreign trade at DIHK, attributed the shifting plans in part to the ongoing trade dispute with the United States. Treier said that the tensions surrounding tariffs are creating uncertainty that is prompting companies to delay investment decisions. He added that an increasing number of firms are electing to both produce and sell within Asian markets, citing China and India as key locales where companies are expanding local production and sales operations.
Despite the increased attention to Asian markets, the euro area remains far and away the dominant target for German overseas investment. The DIHK report highlights the euro zone's stability, its single internal market and the shared currency as providing dependable conditions that continue to attract German investors.
Context and implications
The DIHK results portray a reorientation of planned investment flows by surveyed manufacturers away from the United States and toward Asia, while reaffirming the centrality of the euro area for German foreign investment. The survey data emphasize that tariff-related uncertainty is influencing timing and location decisions for corporate capital expenditures.
Survey details
- Sample: around 1,700 manufacturers.
- Planned investment in the U.S.: 44%, down 4 percentage points from 2025.
- Planned investment in China: 34%, up from 31%.
- Planned investment across Asia-Pacific: 26%, up five percentage points.