REPORT

China Invests in Europe

Thilo Hanemann and Daniel H. Rosen | June 7, 2012

Europe is experiencing the start of a structural surge in outbound direct investment in advanced economies by Chinese firms. The take-off was only recent: annual inflows tripled from 2006 to 2009, and tripled again by 2011 to $10 billion (€7.4 billion) for the year. The number of deals with a value of more than $1 million doubled from less than 50 to almost 100 in 2010 and 2011.

To many business leaders and policymakers, the drivers, motives, patterns and impacts of this buying spree seem impenetrable. Neither Chinese nor European official investment data are sufficient for making sense of this new investment boom. But an alternative approach, based on the collection of data on Chinese greenfield and mergers and acquisitions (M&A) transactions in Europe since 2000, can resolve many of the mysteries surrounding this promising new channel of investment, and point the way to an effective European response to Chinese foreign direct investment (FDI).

This path breaking report by Rhodium Group’s Thilo Hanemann and Dan Rosen provides the first comprehensive assessment of Chinese investment in Europe.

Download the Executive Summary [PDF] 

Download the Full Report [PDF]

See the release event in Brussels.