China invests less in Europe.
(Photo: VIA REUTERS)
Berlin China’s investments in Europe fell again significantly last year. They focus primarily on the automotive and consumer goods industries, according to a study published in Berlin on Tuesday by the Merics Institute, which specializes in China. The main beneficiaries are four countries – Germany, Great Britain, France and Hungary.
Chinese investments in Europe totaled 7.9 billion euros in 2022. This corresponds to the level of 2013 and compared to 2021 a decrease of 22 percent. Three quarters of this is in the automotive and consumer goods industries.
A focus of major projects are batteries that are needed for electric cars. According to the study, so-called greenfield investments, in which Chinese companies set up subsidiaries abroad or build new production facilities, are now at the forefront – with a total of 4.5 billion euros and mainly battery factories. For the first time since 2008, they are more important than takeovers and mergers. These totaled 3.4 billion euros, the lowest level since 2011. “Greenfield investments are less strictly regulated than controversial acquisitions in the critical infrastructure or technology sector,” said Merics chief economist Max Zenglein. Economics Minister Robert Habeck is pursuing a more restrictive course towards China than his predecessors.
According to the study, Germany, France, Great Britain and Hungary accounted for 88 percent of Chinese investments in Europe. The battery companies from the People’s Republic – CATL, Envision AESC and SVOLT – are investing in new plants here.
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