Chinese foreign direct investment in Europe surged last year to its highest level since 2018, driven by a wave of major acquisitions and large-scale factory projects. But analysts are warning the recovery could be temporary.
Issued on: 21/05/2026 - 08:09
3 min Reading time
According to a report by the Berlin-based Mercator Institute for China Studies (Merics) and New York's Rhodium Group, Chinese foreign direct investment (FDI) in the European Union and the United Kingdom reached €16.8 billion in 2025. But while completed investments hit a seven-year high, the value of newly announced factory projects fell sharply. "Completed investments reached the highest level since 2018," said Andreas Mischer, co-author of the report. "But the value of newly announced greenfield transactions has declined very drastically," he added, leaving the durability of the recovery in doubt.
Europe was the top destination for Chinese FDI in advanced economies in 2025, according to a new report. © Merics/Rhodium
