Changing situation of Chinese FDI flows to Europe focuses on Chinese investors, investing entities investing in overseas in 2022, about 9,201 entities, 5.6% of companies investing abroad were state-owned, and had a background manufacturing industry.
The sharp decline in China FDI outflows in the past 7 years, relates from both sides, internal and external. On the one hand, stricter regulation measures taken by the China’s supervision to restrict capital flows. On the other hands, Growing protection associates in foreign countries also had a reducing effect on FDI flows from China.
Especially, with links from both sides, internal and external, the investments of Chinese state-owned enterprises got harder time, had a greater pressure, resulting substantial dropped total Chinese direct investment in Europe of state-owned investment from 67% in 2017, to 8% in 2022.
Changing situation of Chinese FDI flows to Europe
With Chinese FDI inflows for EU, in 2022, about 7.9 billion euros worth of foreign direct investment (FDI) transactions from China were completed in the 27 EU countries and the United Kingdom. However, even with the sharp decline in FDI flows, the capital stock of China FDI abroad widened firmly in recent years and extended to nearly 3 trillion U.S. dollars in 2022.
In addition, China’s M&A value via direct investment in other countries links with Chinese FDI flows, in 2022, the value of China's outward mergers and acquisitions (M&A) via direct investment amounted to around 20.06 billion U.S. dollars. It worth to mention the investment ownership which linked to value of Chinese FDI to EU, in 2022, about 10.6 billion euros worth of direct investment transactions from China were completed in the 27 European countries and the United Kingdom. The state-owned investment amounted to 0.6 billion euros, much less than private investment by ownership.
China foreign direct investments (FDI) in Europe in 2022
Chinese foreign direct investments (FDI) to Europe cash flow declined in 2022 than in the previous year, about 10.34 billion U.S. dollars were directed from China to European countries, a slightly decrease from around 10.87 billion U.S. dollars in the preceding year.
Obviously, within the EU, 3 key economy, Germany economy power still attractive for the Chinese investments, in this regard, China FDI flows to Germany in 2022 meaningful to mention, the outflow of Chinese foreign direct investments (FDI) to Germany stretched about 1.98 billion U.S. dollars.
In addition, North America stand strong over China FDI flows destinations in 2022, North America had been a history maker. Be specific, about 7.27 billion U.S. dollars worth of China direct investments (not including conduit FDI) had been made in North America.
China outward FDI stock in European countries
The leading industries for China's outward foreign direct investment (FDI) stock in European countries was the mining industry in 2022, which created substantial values, specifically by sector, China outward FDI stock in EU countries, in the mining industry amounted to about 18.1 billion U.S. dollars in 2022.
As for general, the distribution of China's outward foreign direct investment flows in 2022, leasing and business services were the main invested sectors, it also created the more values, in 2022, outward foreign direct investments from China in leasing and business services reached around 43.48 billion U.S. dollars.
Investors from China investing in overseas: status and sectors
With general situation of Chinese investors, Chinese investing entities investing in overseas in 2022, the total number was 9,201, about 5.6% of companies investing abroad were state-owned, and had a background in the manufacturing industry.
It means, Chinese domestic investor companies investing overseas the manufacturing background played an important role, which the manufacturing is still a strong backbone for Chinese economy where the main wealth were come from.
However, non-financial sectors should be to be noted with China's outward foreign direct investment (FDI) flows, in 2022 amounted to around 54.95 billion U.S. dollars, which was the outflow value of FDI from China's central-government-owned enterprises in non-financial sectors in 2022.
If you enjoyed reading Changing situation of Chinese FDI flows to Europe, we recommend you to read Chinese investors and investment firms in Europe update 2023, and the latest trends and updates on regulatory developments, emerging asset classes, China FDI investments related article subject China outbound investment of Q1 2023 highlights.
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