In recent years, the direct investment of Chinese enterprises in Germany is not only increasing rapidly, but shows greater development prospect. The Chinese government supports enterprises to conduct foreign direct investment, which leads to heavy demand on foreign direct investment together with the objectives of internationalization and advanced technology introduction. Therefore, Chinese enterprises may expand its foreign direct investment on Germany in the near future. Meanwhile, German government also encourages foreign investors. However, some instable factors are also coming against the slow global economic recovery as well as Euro crisis. The machinery manufacturing enterprise plays a key role in promoting national economic development. The intensifying global market competition requires Chinese enterprises to conduct tough training to strengthen internationalization tendency. In recent years, the machinery manufacturing enterprise responses to “going out” strategy and accelerates overseas acquisition, which improves enterprise strength to great extent, increases industry development and achieves obvious effects concerning enterprise R & D and profitability. The research focus of this paper lied in how Chinese enterprises conducted foreign investment in Germany, which fields and regions have values to Chinese enterprises as well as problems and risks that shall be considered before investment and how to improve the current investment status and reduce risks. This paper attempted to study the investment environment in Germany as well as the policies and measures to encourage foreign investors to conduct investment in Germany and then analyzed some specific cases concerning Chinese enterprises’ direct investment in Germany.