Chinese investment in Europe is declining sharply

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Chinese investment in Europe is declining sharply


Thursday – 7 Dhu al-Qi’dah 1442 AH – 17 June 2021 AD Issue No. [
15542]

Beijing: «Middle East»

A study published on Wednesday showed that China’s investment in Europe was much lower last year than in previous years.
Direct investments from China in the European Union and Britain fell 45 percent year-on-year to 6.5 billion euros ($7.8 billion), according to a joint study by the Paris-based Rhodium Group, which leads research on European-Chinese relations, and The Merex Institute, based in Berlin. The study indicated that this is the lowest level in 10 years.
Germany, France and Britain remain the main target countries in Europe for direct investment from China, with Germany topping the list.
Britain, which came in third, recorded a 77 percent drop in direct investment from China.
Meanwhile, Poland became a big new major recipient last year with a boost through a major acquisition.
The study notes that this trend appears to continue this year, with Chinese investment continuing to decline in the first quarter.
The study revealed that Europe remains an attractive location for investment, but the current turmoil caused by the emerging epidemic of the “Corona” virus, high barriers to capital flows from China, and major regulatory obstacles in Europe, all contribute to a noticeable shift to lower levels of Chinese investment. .
Several countries in the European Union stressed; Among them, Italy, France, Poland and Hungary, among its vetting mechanisms are direct investment from third countries, which means that many Chinese acquisitions have not worked.
The Merex Institute said upon the release of the study that the strained and deteriorating relations between the European Union and China could create additional headwinds for Chinese investors in the future.


China

European Union

Europe and China







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