Why do many German companies want to invest in the US?

The US, unlike Germany, is strong, dynamic and generally considered “pro-business”. No wonder many German companies want to invest in America.

DLeaders of German companies increasingly direct investments to the United States. Last year they put more money into US projects than ever before. A German-American Chamber of Commerce survey of German branches in the United States revealed that 95 percent of stock companies intend to expand their investments within the next three years. Nearly three-quarters plan to expand their U.S. workforce this year.

There are several reasons for America's preference. China, one of the most important destinations for investments and sales for the German economy, is becoming less attractive. Growth rates are shrinking as the state continues to foster local competition and close markets. There are also geopolitically motivated constraints: the West, and above all the US, wants to prevent China from growing into an invincible hegemon using Western technology. So the US insists not to supply high-tech semiconductors and specialized manufacturing technology to China.