Robust Momentum Despite Auto Slowdown: Q4 2024 Update
New global investments by Chinese companies fell in Q4 2024: Despite robust investment in energy and minerals, a continued slowdown in the automotive sector caused an overall decline.
Investment momentum
As in previous years, Chinese outbound investment momentum slowed in the fourth quarter. We recorded 141 major foreign direct investment (FDI) transactions by Chinese companies in Q4 2024 with a total estimated value of $16.5 billion.
New greenfield investment dropped 41% from the previous quarter to $12.3 billion. Only two transactions exceeded a billion dollars: Sinopec’s $1.8 billion refinery project in Algeria and Zijin Mining Group’s $1.3 billion zinc and lithium processing facilities in Saudi Arabia.
M&A transactions by Chinese firms totaled $4.2 billion, a decline of 23% from the previous quarter. Despite the drop, the three largest investments of the year were recorded this quarter: Tencent’s $1.2 billion acquisition of Cyprus-based Easybrain, Huaxin Cement’s $1 billion purchase of Lafarge’s Nigerian business, and Zijin Mining’s $1 billion acquisition of the Akyem Gold Mine in Ghana.
Robust Momentum Despite Auto Slowdown: Q4 2024 Update
The Middle East and North Africa emerged as the leading region for newly announced investments, while Africa and Asia also recorded strong activity. In contrast, North America experienced a sharp decline in new project announcements, reflecting investor caution amid ongoing US trade policy uncertainty.
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