Chinese Investment in Europe Drops, Except for EV Batteries
- Direct investment from China fell 22% to €7.9 billion in 2022
- Greenfield investments exceeded M&A activity for first time
Chinese battery maker SVolt Energy Technology Co. is set to expand its footprint in Europe to as many as five factories, with talks to supply the region’s carmakers well underway.
Photographer: Qilai Shen/BloombergChinese investment in Europe plunged by more than a fifth last year to a decade low as a shift toward greenfield investments in electric-vehicle batteries only partially offset a steep decline in mergers and acquisitions, a survey showed.
Foreign direct investment in Europe from China sank to €7.9 billion ($8.7 billion), a 22% decline from the previous year, according to a report published Tuesday by the Berlin-based Mercator Institute for China Studies and New York-based Rhodium Group. It was the first year that greenfield investments, which increased by 53%, outpaced deals.