China Continues Upstream Expansion in Supply Chains: Q3 2025 Update
Though slightly below the peak in early 2025, China’s outbound FDI momentum remained strong in Q3 2025. Amid global anxiety about China weaponizing critical mineral supply chains, Chinese investment in basic materials reached a new high.
Investment momentum
New data from the China Cross-Border Monitor (CBM) shows 138 major FDI transactions by Chinese companies in Q3 2025 totaling an estimated $29.9 billion.
Greenfield investment remained the dominant mode of entry for Chinese outbound investment, totaling $23.9 billion and accounting for 80% of total investment. Only five transactions over $1 billion were recorded this quarter, against an average of seven since 2024. The largest transaction was a $5.9 billion investment led by Tongkun Group, a leading Chinese polyester and chemical fiber producer, in an integrated refining and chemical complex in Indonesia.
New M&A transactions by Chinese firms totaled $6 billion, marking the strongest quarter of the year. They were driven by a rebound of Chinese M&A in Europe and Asia, which accounted for 97% of total acquisitions this quarter. The largest transaction was JD.com’s announced $2.5 billion voluntary takeover bid for Germany’s Ceconomy, parent of the MediaMarkt and Saturn electronics chains.
China Continues Upstream Expansion in Supply Chains: Q3 2025 Update
Though slightly below the peak in early 2025, China’s outbound FDI momentum remained strong in Q3 2025. Amid global anxiety about China weaponizing critical mineral supply chains, Chinese investment in basic materials reached a new high, especially in raw materials.
Read on the China Cross-Border Monitor