Research by Baker & McKenzie shows Chinese investment in Europe is at record levels. With 153 separate investments worth $18bn last year, Europe has emerged as one of the top destinations for Chinese foreign investment globally.
Portugal came in behind the United Kingdom ($5.3bn), Italy ($3.5bn) and the Netherlands ($2.3bn), but ahead of Germany ($1.6bn).
Using a unique dataset of acquisitions and greenfield investments provided by research firm Rhodium Group, the new report, Reaching New Heights, paints a clear picture of Chinese investment in Europe.
“Chinese investment in Europe has become much more diverse in recent years and is now extending into all parts of Europe”, said Thomas Gilles, Chairman of the EMEA-China Group at Baker & McKenzie.
“What we’re seeing is the maturing and normalisation of Chinese investment processes in line with the international economy.”
Since the turn of the century the four countries which have attracted the most Chinese investment are the United Kingdom ($16bn), Germany ($8.4bn), France ($8bn) and Portugal ($6.7bn) followed by Italy ($5.6bn), The Netherlands ($4bn), Hungary ($2.6bn), Sweden ($2bn), Spain ($1.5bn) and Belgium ($1.2bn).
While 70 percent of the investment over the last decade has gone to those economies which emerged relatively unscathed from the crisis, the last three years have also seen significant Chinese interest in the privatisation of state-related industries such as utilities or logistics in countries such as Portugal.
“Chinese investors are clearly taking opportunities when they arise in markets going through difficult times but they also see great benefit in investing in more stable countries, where there are strong existing economic ties to China through trade and tourism”, said Danian Zhang, Chief Representative of Baker & McKenzie’s Shanghai office.
He concludes: “They are making a long-term bet on the European economy.”