German makers expand China capex despite EU de-risking rules
Industrial giants funnel €7.8 billion in reinvested earnings into local supply chains, creating a widening structural split with Brussels over economic security directives.
MOBy Mina Okoro, Supply chain editor··Updated September 6, 2026·3 min read
ShareLinkedInXWhatsAppEmailEngineers review production schematics beside an automated automotive assembly line in a manufacturing plant. (AI-generated image)
German manufacturers accelerated capital spending across Chinese production hubs on Sept. 5, defying European Union de-risking goals as chemical and automotive groups directed reinvested earnings into domestic supply chains.
The European Commission introduced economic security guidelines to curb strategic dependencies on Chinese manufacturing networks. German industrial balance sheets show an opposite trajectory as major exporters anchor production facilities directly inside China.
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Supply chain editor — Mina Okoro builds the impact maps that connect East Asian developments to buyers in North America and Europe, and edits the Asia Compare desk.
