Chinese Investment in Europe Drops, Except for EV Batteries

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Globally, China’s investment activities fell 23%, while in Europe, nearly 90% flowed to Britain, France, Germany and Hungary. Photo: Bloomberg

(Bloomberg) — Chinese investment in Europe plunged by more than a fifth last year to a decade low as a shift toward greenfield investments in electric-vehicle (EV) batteries only partially offset a steep decline in mergers and acquisitions, a survey showed.

Foreign direct investment in Europe from China sank to €7.9 billion ($8.7 billion), a 22% decline from the previous year, according to a report published Tuesday by the Berlin-based Mercator Institute for China Studies (MERICS) and New York-based Rhodium Group. It was the first year that greenfield investments, which increased by 53%, outpaced deals.