China was the third-largest investor in terms of projects in Germany in 2012, following the United States and Switzerland, Hempel said.
Broda added that Chinese outward FDI in Germany focuses on three key industries: automotive, industrial machine and equipment; electronic and semiconductor; consumer products (including food and beverages), accounting for 62 percent of total Chinese outward FDI in Germany.
In 2013, GA Pack, a China-based manufacturer of aseptic packaging, planned to invest a further 38 million euros to build a second production line in Germany after investing 50 million euros to build a European production facility in 2011.
"In the near future, Chinese companies will carry out more M&As in the sector of auto parts in Germany. The overseas M&As of Chinese companies are now very purposeful and they aim at acquiring core technology in the EU or Germany. The German plants of auto parts, mostly family businesses, are troubled by capital shortages or lack of inheritors," said Huang Qun, a partner at Taylor Wessing.
He added Chinese enterprises during cross-border M&As may face risks from the differences in language, cultural and business models, which will lead to mistrust and significantly decide the ultimate success of the transactions.