16:52 23 May 2025
Chinese Investments in Europe Surge by 47 Percent, Poland Among Top Beneficiaries
In 2024, Chinese foreign direct investment (FDI) in the EU and UK rose by 47 percent, reaching €10 billion – the first notable rebound since 2016, according to Rhodium Group. This growth was driven primarily by greenfield projects and mergers and acquisitions.
Greenfield investment hit a record €5.9 billion, while M&A activity surged 114 percent y/y to €4.1 billion. A standout deal included Tencent’s €1.46 billion stake in Polish game developer Techland.
Hungary led as the top recipient of Chinese FDI in Europe, attracting 31 percent of total flows, followed by Poland with €4.2 billion, placing it second in Central and Eastern Europe.
Despite the upswing, analysts caution that the slowdown in the electric vehicle (EV) sector – China’s key investment focus – could threaten future momentum. In 2024, EV-related project announcements fell sharply, and three major battery plant deals were canceled.
Without a strong replacement sector, sustaining Chinese FDI in Europe may prove difficult in the long term.
(XYZ)
