China has acquired ownership of more than 11,300 patents developed in Germany over the past two decades, highlighting Beijing’s growing influence over key industrial

technologies, according to a study released by the German Economic Institute (IW).

The study, commissioned by the Bertelsmann Foundation, found that nearly one-third of inventions originating in Germany are now owned by foreign entities. U.S.-based owners account for the largest share of these patents, holding almost one-third, while Swiss owners control around 11%.

The trend is particularly evident in Germany’s mechanical engineering sector, a cornerstone of the country’s industrial economy. Patent applications in the field increased from roughly 3,300 in 2000 to 4,300 in 2022, with China emerging as a significant buyer of technology-related intellectual property.

While cross-border patent ownership is common in global markets, IW researcher Oliver Koppel argued that China’s approach differs from that of other countries.

“German companies also hold patents abroad. That is part of normal competition,” Koppel said. However, he noted that Beijing has pursued acquisitions of Western technologies as part of a broader strategic effort while maintaining restrictions on foreign investment in its own market.

Koppel described the situation as an imbalance and urged European policymakers to scrutinize more closely the transfer of strategically important technologies to foreign owners.

The report also pointed to concerns about Germany’s weakening innovation capacity. According to the IW, insufficient investment in research and development has eroded the country’s competitive position over time.

Germany ranked third globally in research and development spending in 2000, when its investment levels were roughly double those of China. By 2021, however, Germany had fallen to sixth place.

China, meanwhile, has dramatically expanded its research efforts, increasing R&D expenditure twentyfold during the same period, the institute said.

This version follows a neutral news-reporting style with a stronger headline, clearer structure, and smoother transitions typical of business and economic journalism. Photo by Wrightbus, Wikimedia commons.