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China's investment boom in Europe appears to be over

2022-04-27T14:17:25.907Z


China's investment boom in Europe appears to be over Created: 04/27/2022, 16:05 By: Sven Hauberg Chinese companies invested significantly less in Europe in 2021 than a few years ago (symbolic photo). © Leung Cho Pan/PantherMedia/Imago The fat years are over: According to a study, Chinese companies have recently invested significantly less in Europe than they did a few years ago. Munich - Chin


China's investment boom in Europe appears to be over

Created: 04/27/2022, 16:05

By: Sven Hauberg

Chinese companies invested significantly less in Europe in 2021 than a few years ago (symbolic photo).

© Leung Cho Pan/PantherMedia/Imago

The fat years are over: According to a study, Chinese companies have recently invested significantly less in Europe than they did a few years ago.

Munich - China's investments in Europe remained at a low level last year.

This emerges from a study published by the China think tank Merics and the research institute Rhodium Group on Wednesday (April 27).

According to the report, Chinese investments in Europe increased last year by more than a third compared to 2020 to 10.6 billion euros;

overall, however, after 2020, 2021 was the year with the lowest Chinese money flows to Europe since 2013.

“Chinese investment has settled at low levels compared to peaks around 2016,” says Merics chief economist Max J. Zenglein.

"I assume that in the current difficult economic and regulatory environment, Chinese investments will not increase significantly in the foreseeable future." In addition to the Netherlands, Germany, Great Britain and France were again the most popular destinations for Chinese direct investments, according to the study.

Chinese money is also going into infrastructure and energy projects in southern Europe.

China: Takeover of German manufacturer of ventilators stopped

"The nature of Chinese investments in Europe has changed fundamentally in recent years," explains Agatha Kratz, Director at Rhodium Group.

"The time of multi-billion takeovers in strategic sectors is probably over." Instead, Chinese companies would build their own factories in Europe, for example in the area of ​​building batteries for e-mobility.

Chinese companies would also act as capital investors in European start-ups.

"These activities are not necessarily alarming because such investments can have a stimulating effect on Europe's economy," said Kratz.

"But they must be closely monitored by European politicians, as the risks of economic cooperation with China are currently shifting."

China: economy suffers from corona lockdowns

Takeovers of German companies by Chinese investors have repeatedly been criticized in the past and in individual cases have been prohibited by the federal government.

Most recently, on Wednesday, Berlin refused to approve the purchase of Heyer Medical AG by the Beijing-based Aeonmed Group.

Both companies manufacture medical devices, including ventilators in particular.

As the

Handelsblatt

reports, the takeover has now been stopped for reasons of public safety.

The Chinese economy is currently suffering from the many lockdowns imposed by the government due to the spread of the corona virus.

Shanghai, where the world's largest port is located, is particularly affected.

Loss of production and disrupted supply chains are also driving up prices in Germany.

(

sh)

Source: merkur

All news articles on 2022-04-27

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