Correct. BASF is investing heavily in China. Nothing tells you more about this problem than the most German of companies moving to China.

BASF's largest plant in Germany was hooked up directly to Russian gas. Russian gas is now going to China. So are BASF.

I don't think regulation or subsidies are to blame either. Eastern Europe is receiving heavy investment because they have costs for workers under control and can provide a more stable political environment. The problem with Germany specifically is that they papered over a lot of bad fundamentals in the early 2000s with cheap energy and very close relations with Russia.