German guarantees for China investments rise in ’24

Germany’s state guarantees for investments in China rebounded slightly in 2024, totalling €105.6 million ($111 million) by November 1, compared to €71 million for all of 2023, according to figures from the Economy Ministry.

This follows a sharp decline in recent years, with guarantees amounting to €745.9 million in 2022 and €1.952 billion in 2021.

The decline reflects Germany’s more cautious policy towards China and a weak Chinese economy. Export credit guarantees for China also saw an uptick, reaching €696.2 million this year, up from €650 million in 2023.

State guarantees shield businesses from losses, earning fees for the government when claims are not made.

Attribution: Reuters

Subediting: M. S. Salama