The relative attractiveness of Germany and the United States for Chinese overseas investments

Over the last decade, Chinese outward direct investment (ODI) has been rapidly growing in technologically advanced countries. In this paper, the investment trends are explored with a particular focus on the United States of America and Germany. While the Chinese investors are interested in the U.S. as a powerhouse of technology creation, they may also find Germany an attractive option with its concentrated technological offerings and an easier access. Using 13 factors explores not only technological attractiveness, but also cultural affinity and any trade frictions and investment openness. This paper looks to see if Germany or the USA is overall a more successful location for Chinese ODI.