Why is Germany still cosying up to China?

Growth is slowing down. The property market is wobbling. And the government is tightening its grip on every form of economic activity. Global investors have made a decision about China over the last few months. It may have one of the biggest markets in the world, but the risks are simply too high. Over the second quarter of this year, foreign investors pulled a record amount of money out of China. A total of $15 billion was taken out of the country, and if that continues for the rest of the year it will be the first time the total has turned negative since 1999.

There is, however, one exception: Germany. In total, German companies invested €4.8 billion in China in the second quarter, almost double of what they invested in the first quarter, according to the Bundesbank. In the first half of the year, the total volume of direct investments by German industry came to €7.3