Strategic diversification is gaining traction. KPMG found that 51% of surveyed firms were evaluating new markets in Africa, South America, or Eastern Europe, while 20% aimed to focus more on Asia. Only 4% considered exiting China due to U.S. policy shifts, compared with 19% weighing an exit from the U.S.
What to Watch
The next test will be whether the recent flow weakness persists into 2026 or whether the deep stock position and stated expansion plans translate into renewed capital deployment. Will the resilience of the cumulative investment stock and the stated expansion plans of German subsidiaries prove more durable than the recent flow data suggest?
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
