Core Insights - Germany has established a comprehensive foreign investment service system through diversified policy support, investment promotion agencies, a robust risk management framework, and enhanced regulation of multinational corporations [1][3][6] Group 1: Current Status of German Enterprises Going Global - German enterprises have been actively expanding overseas since the 1970s, with a significant increase in international market presence in the 21st century [1][3] - Despite a 60% decline in Germany's foreign direct investment in 2024, the stock of foreign direct investment still accounts for over 45% of GDP [3][4] - 40% of surveyed German companies plan to increase overseas investments, indicating a strong focus on international markets [3] Group 2: Characteristics of German Enterprises Going Global - The main players in Germany's overseas investments are large multinational corporations, supported by small and medium-sized enterprises [3][4] - Germany has 29 companies in the Fortune Global 500, with a high proportion of "hidden champions" in niche markets [3][4] - Major companies like Siemens and Volkswagen are deepening their global presence through greenfield investments and acquisitions [3][5] Group 3: Regional Distribution of Investments - German enterprises are diversifying their investment regions to reduce reliance on single markets, with notable growth in investments in China, Southeast Asia, and North America [4] - In 2024, German investments in China reached €5.7 billion, a 25% increase year-on-year [4] Group 4: Complete and Mature Industrial System - Germany's high-end manufacturing and modern service industries are key drivers of international expansion, with over 70% of overseas revenue coming from the automotive, machinery, chemical, and electronics sectors [5] - The internationalization of the service sector, including finance, insurance, and logistics, has accelerated, supporting the overseas activities of German manufacturing [5] Group 5: Systematic Support for Overseas Investment - Germany provides a comprehensive policy resource support system, including funding, tax incentives, and insurance to mitigate investment risks [6][7] - The German Investment and Development Company offers specialized services for SMEs, including low-interest loans and financing guarantees [6] - The government also provides export credit insurance and investment guarantees to cover various risks associated with overseas investments [6] Group 6: Risk Management Framework - German enterprises have established a comprehensive risk management system that includes pre-investment assessments and post-investment responses [8][9] - A three-tier governance structure for risk management is in place, with dedicated risk management departments and specialized risk officers in various regions [8] - Companies utilize quantitative management tools and digital platforms for real-time monitoring of risk indicators [8] Group 7: Regulatory Framework for Multinational Corporations - The German government has implemented a multi-layered regulatory framework to ensure compliance with both domestic and host country laws [9][10] - The regulatory system emphasizes employee rights, environmental protection, fair competition, and transparency in international operations [10] Group 8: Recommendations for China - China can learn from Germany's experience by enhancing policy resource supply, establishing a professional service network, and strengthening risk management [11][12] - Recommendations include creating a diversified policy support system, improving tax incentives, and developing a comprehensive overseas investment insurance mechanism [11][12] - Establishing a multi-faceted professional service network and enhancing risk management controls are also suggested for Chinese enterprises [13][14]