China’s Investment in Europe Sees Growth in 2024

In 2024, China’s investment in Europe increased for the first time in nine years, solidifying its role as a significant source of capital. According to a joint report from the Chinese Studies and the Rhodium Group, investment surged by 47% compared to last year, reaching around 10 billion euros, or about US$11.23 billion.

This uptick represents the first rise since 2016, a year when European governments began to express serious concerns regarding Chinese investments. A notable incident from that time involved the acquisition of Kuka, a German industrial robot manufacturer, by Midea Group, a Chinese appliance company, raising fears that Beijing might gain control over essential European technology firms.

In the ensuing years, investment from China dwindled as the EU established a foreign direct investment screening mechanism aimed at preserving its strategic assets. However, with Chinese firms facing barriers in other markets, particularly the U.S., there seems to be a revival, though it remains significantly lower than the levels observed before 2017.

The report indicates that 53.2% of China’s investment in high-income economies is directed towards Europe, and together, the EU and the UK comprise 19.1% of all foreign direct investments originating from China.

Interestingly, greenfield investments—where Chinese companies initiate new operations from the ground up—increased by 21% from the previous year, marking the third consecutive annual growth. On the other hand, mergers and acquisitions saw a remarkable 114% rise to 4.1 billion euros, although it’s worth noting that this leap comes from a relatively low starting point.