Despite ongoing trade friction between China and Europe, Chinese foreign direct investment (FDI) in the European Union and United Kingdom reached €10 billion in 2024, marking a remarkable 47% increase and the largest growth since 2016, according to a new report by research firm Rhodium Group.
The report, released on the 21st, reveals that Europe remains China’s primary investment destination, accounting for 53.2% of China’s total investment in high-income economies in 2024. This surge was driven by both greenfield investments—where foreign investors establish new operations from scratch—and stronger merger and acquisition activity.
Chinese greenfield investments in Europe totaled €5.9 billion, growing 21% year-over-year and reaching a historic high for the third consecutive year. Meanwhile, Chinese mergers and acquisitions in Europe soared 114% to €4.1 billion, contributing significantly to the overall investment boom.
The investment landscape has shifted dramatically across European countries. Germany, France, and the United Kingdom, which traditionally dominated Chinese investment flows, saw their combined share drop to just 20% in 2024, down 32 percentage points from the 2019-2023 average of 52%. This reflects a notable transformation in China’s European investment patterns.
Hungary emerged as the top destination for Chinese FDI, capturing 31% of total investments, largely due to capital-intensive greenfield projects. While Chinese electric vehicle investments in Europe have garnered attention, they remain relatively small compared to overall investment volumes.
Looking ahead, Chinese investment in Europe may continue growing in 2025, though the slowing pace of electric vehicle sector expansion could potentially dampen long-term investment prospects in the region.
Source: Central News Agency (Taiwan), May 21, 2025https://www.cna.com.tw/news/acn/202505210165.aspx