Chinese investments in Europe decrease

Takeovers from Chinese companies in Europe dwindle since 2.5 years. Last year, there were 196 company takeovers or participations, 21 percent less than in 2017:

This decrease has several reasons:

• New investment screening rules in Europe: Chinese companies were first welcomed in Europe, but after some spectacular takeovers (such as the German robot manufacturer Kuka or the Swiss agrochemical business Syngenta), there were fears about an alleged sellout of European technologies to China. Consequently, new investment screening rules are now being created by the EU and European governments.
• Stricter capital controls and approval procedures in China: Several Chinese companies invested to aggressive, which left them indebted, this then led to stricter capital controls and approval procedures by the Chinese government.
• Trade conflict with the US and the economic slowdown in China.

Further reading:

Chinese investments in Europe decrease (in German) / NZZ

Analysis of Chinese acquisitions in Europe (in German) / EY

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