Baker McKenzie: China FDI into Europe hits 5-year low

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Latest report, in partnership with Rhodium Group, reveals that Chinese investment in the advanced economies of Europe and North America fell 18% on the same period last year

 

Chinese companies invested just US$12.3 billion in the advanced economies of Europe and North America in the first half of 2019, down 18 percent from a year earlier and the lowest activity level since 2014, according to the latest report from Baker McKenzie in partnership with Rhodium Group.
 
After a strong start to 2019 driven mainly by the completion of two mega deals that were already in the pipeline from 2018 -- Shandong Ruyi-Lycra and Anta-Amer -- activity quickly leveled off in both regions. There were US$3.3 billion of completed deals in North America and US$9 billion in Europe. Chinese investment peaked in Europe in the first half of 2017 at US$53.9 billion and in North America in the second half of 2016 with US$28.4 billion.
 
North America and Europe are not the only regions seeing declines of Chinese investment. China’s global outbound investment dropped further in the first half of the year, with newly announced global M&A transactions by Chinese firms down 60 percent to US$20 billion.