Chinese economy

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published: 26.06.2025

Chinese investment rebounds despite growing frictions - Chinese FDI in Europe: 2024 Update

Chinese foreign direct investment (FDI) in the EU and UK rebounded last year for the first time since 2016: it reached EUR 10 billion, rising 47 percent from 2023. Europe remained the leading destination for Chinese investment in high-income economies, drawing 53.2 percent of all Chinese FDI in such markets. In 2024, the EU and UK’s share of total Chinese FDI also rose to 19.1 percent, the first significant increase since 2018. These are some of the findings from MERICS' latest joint report with Rhodium Group that summarizes China’s investment footprint in the EU-27 and the UK in 2024, analyzing the shifting patterns in China’s FDI, as well as policy developments in Europe and China. Building on a long-standing collaboration, this year’s edition written by Agatha Kratz, Max J. Zenglein, Andreas Mischer, Gregor Sebastian and Armand Meyer includes a focus section on the politics of Chinese greenfield investments in Europe’s electric vehicle (EV) sector.