China’s Global M&A Activity Jumps to Five-Year High: Q1 2026 Update

Investment momentum

New data from Rhodium Group’s China Cross-Border Monitor (CBM) shows that mainland Chinese companies announced 128 major FDI transactions in Q1 2026 with an estimated total value of $26.3 billion.

Greenfield investment totaled $16.7 billion, marking a slight recovery after a two-quarter decline. Four transactions exceeded $1 billion, the largest being Geo-Jade partnering with an unnamed Qatari investor to invest an estimated $3.9 billion at the Sozak gas project in Kyzylorda, Kazakhstan.

New M&A transactions by Chinese firms totaled $9.6 billion, increasing for the fifth consecutive quarter and reaching the highest quarterly value since Q1 2021. M&A is also growing as a mode of entry for Chinese FDI, averaging around 40% of total investment over the last two quarters, the highest share since 2021. The largest transaction was Zijin’s $4 billion acquisition of Canadian mining firm Allied Gold Corp, which holds several gold assets globally, including the Sadiola project in Mali, the Bonikro and Agbaou mines in Ivory Coast, and the Kurmuk deposit in Ethiopia.

The first quarter saw several notable transaction status updates. Hengyi secured the necessary approvals and financing commitments to proceed with the second phase of its estimated $10 billion oil refinery and petrochemical complex in Brunei, while Livzon finalized its offer to acquire 78% of Vietnamese Imexpharm for around $260 million.  Wangneng Environment and Hunan Junxin have each broken ground on separate waste-to-energy plants, valued at $173 million in Uzbekistan and an estimated $80 million in Kyrgyzstan, respectively. Kedali commenced the development of its $74 million auto parts manufacturing complex project in the US by purchasing a $25 million warehouse in Wisconsin, while Picea Robotics completed its acquisition of vacuum robot maker iRobot for $352 million. Jiangxi Copper acquired the remaining 88% of SolGold, which holds the Ecuadorian Cascabel copper and gold project, for $1.2 billion. In Indonesia, CNGR inaugurated both a $404 million nickel smelter in Tanah Bumbu Special Economic Zone and a $330 million nickel matte plant expansion in Morowali Industrial Park.

Multiple troubled Chinese investments were reported in the first quarter, largely due to national security concerns and regulatory intervention. In Europe, the UK has blocked Mingyang’s planned $1.8 billion wind turbine manufacturing facility and rejected JAC Capital’s appeal against a government order to divest its 80% stake in chip manufacturer FTDI. Belgium’s military intelligence service is probing GDAT’s acquisition of helicopter maker NHV via Ireland-based GD Helicopter Finance. In the Americas, Geely-owned Mitime has been forced to divest Miller Sports Park Racetrack in Utah on national security grounds. The $500 million Chile-China Express Submarine Cable developed by China Mobile, HMN Technologies, and Hengtong Optic-Electric was canceled due to US pressure. In India, the government seized Wingtech Technology’s manufacturing assets, blocking its planned divestment to Luxshare Precision Industry. Neta halted production at its Indonesian EV factory due to domestic financial difficulties.

Investment by sector

The top sectors for Chinese outbound investment in Q1 2026 were energy, basic materials, and consumer products (Figure 2).

The energy sector ranked first, attracting $9.1 billion in investment, the second highest level in the past five years. The largest transaction was Geo-Jade’s estimated $3.9 billion investment in the Sozak gas project in Kazakhstan. Also in Kazakhstan, CHN Energy plans to develop two wind and solar farms for an estimated $1.1 billion in partnership with Samruk Energy Power Holding. In Indonesia, Nanshan Group is investing $1.8 billion for the first phase of its oil refinery and petrochemical project to power an alumina plant.

The basic materials, metals, and minerals sector ranked second, attracting $7.4 billion in investment, dominated by Zijin’s $4 billion acquisition of Canada-based Allied Gold Corp, which owns multiple gold mines in Africa. Aluminum Corporation of China acquired a majority stake for an estimated $605 million in Companhia Brasileira de Alumínio, a low-carbon aluminum business in Brazil holding three bauxite mines. Huanrong Paper will invest $500 million to build a paper factory in Urgut Free Economic Zone, Uzbekistan. In Indonesia, Shandong Nanshan Aluminum will invest $437 million to build an electrolytic alumina plant.

With $2.7 billion, the consumer products and services sector ranked third, led by Anta Sports Products’ acquisition of a 29% stake in German sportswear maker Puma for $1.8 billion. Centurium Capital Partners has agreed to acquire American Blue Bottle Coffee for $400 million. In Rayong, Thailand, Shenzhen Megmeet is investing $120 million for a smart toilet seat factory, and Huixing Machine has acquired the circular knitting operations of German Mayer & Cie.

Investment by geography

Asia was the top destination for Chinese capital in Q1 2026, followed by Africa and Europe (Figure 3). North America came fourth but recorded its strongest quarter since 2023 at $2.4 billion, driven by Smithfield Foods’ announcement of a $1.3 billion food processing plant in South Dakota.

Asia ranked first in Q1, attracting $13.2 billion in investment, the third highest level in the past five years. The largest transaction was Geo-Jade’s estimated $3.9 billion gas project in Kazakhstan, followed by Nanshan Group’s $1.8 billion for an oil refinery project in Indonesia. Other projects include CHN Energy $1.1 billion investment for two wind farms and a solar plant in Kazakhstan and Huanrong Paper’s $500 million for a paper factory in Uzbekistan.

Africa ranked second, with $5.0 billion of investment, the fourth highest level since 2022. Zijin is acquiring Canadian Allied Gold Corp for $4 billion, which owns gold assets in Mali, the Ivory Coast, and Ethiopia. In Namibia, CNNC acquired 43% of the Etango uranium project for $322 million. Matrix Golden Fortune announced it will acquire 70% of Meyas sand gold project in Sudan for $260 million.

Europe ranked third, attracting $3.5 billion in investment, its lowest level since Q2 2023. Anta Sports Products struck a deal to acquire 29% of Puma for $1.8 billion. Spain attracted the bulk of greenfield investment, concentrated in clean technology: Shanghai Shaanyao announced an estimated $700 million green hydrogen plant in Andalusia, Xiamen Hithium an estimated $230 million battery and energy storage systems plant in Navarra, and Dajin Heavy Industry a $125 million offshore wind foundations facility in Asturias.