Chinese FDI in Europe and Germany: Preparing for a New Era of Chinese Capital

A new report by Rhodium Group in partnership with the Mercator Institute for China Studies (MERICS) analyzes recent trends of Chinese FDI in Europe, discusses the economic and political implications, and outlines priorities for policy and business leaders in reacting to these new flows.

We are entering a new era of Chinese capital: China’s policy liberalization and adjustments to its growth model will turn the country from a nobody to a driving force in global cross-border investment in the coming decade. Projections see China tripling its global assets from currently $6.4 trillion to almost $20 trillion by 2020 – a catch-up process that will have significant implications for host economies and global markets. This shift in China’s global investment position will require political leaders around the globe to adjust their economic policy configuration towards China both to reap the benefits of this next stage of global integration as well as minimizing potential new risks. This is particularly true for the countries of the European Union, whose economies are now intimately linked up with China following three decades of trade integration and significant investment of European businesses in China.

Download the Executive Summary [PDF]