The boom in Chinese investment in Europe appears to have peaked. This was shown by a study conducted by the German Merics Institute and the Rhodium research group, which was published today.
According to the survey, Chinese investment in Europe rose again last year by more than a third to 10.6 billion euros compared to the previous weak year 2020. But compared to the years after 2013, spending by Chinese companies rises slightly earlier. . In addition to the Netherlands, Germany, the United Kingdom and France were again the most popular among investors from China, according to the study.
“The nature of Chinese investment in Europe has changed drastically in recent years,” explains Agatha Kratz, Principal of the Rhodium Group. For example, according to Kratz, the time for multi-billion dollar acquisitions in strategic sectors may be over. Instead, Chinese companies are more likely to build their own factories in Europe, particularly in areas where they believe they have competitive advantages, such as e-mobility batteries.
“Compared to the peak period in 2016, Chinese investment has stabilized at a low level,” said Merics Chief Economist Max Zenglein. Europe remains interesting for Chinese companies, but Zenglein does not expect Chinese investment to increase significantly in the near future given the current challenging economic and regulatory environment.
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