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Chinese Investment in Germany Down by 95 Percent

According to the German Focus, a weekly magazine, Chinese companies have greatly reduced their investment in Europe. Investment in Germany has even down by 95 percent.

According to a study that the consulting firm Ernst & Young published in the first half of 2019, Chinese investments in Europe were only US$2.4 billion, or 2.1 billion euros. That represents an 80 percent drop from the same period last year. Although Chinese companies bought the shares of or acquired 81 European companies, most of them were small size investments.

China does not even have a large-scale M&A in Germany. Chinese investment in Germany was only US$0.5 billion in the first half of 2019. In 2018, the total Chinese investment was US$10 billion. This is the equivalent of a reduction of 95 percent. The consulting firm believed that the main reason for the decline was the suspicion and caution toward Chinese companies in Europe and the impact of the US-China trade war on the Chinese economy. 2016 was a record year, with Chinese investment of more than $85 billion in EU countries.

Source: Radio France International, August 12, 2019