According to a recent report by research firm Rhodium Group, European investment in China is increasing. However, the growing volume of European investment in China is mainly driven by a handful of large companies.
Germany, the Netherlands, the UK and France increased their investments in China
Germany, the Netherlands, the UK and France have accounted for 87 per cent of the total investment from Europe to China in the last ten years. In the previous ten years, these four countries accounted for only 69% of European investment flowing into China.
The dominant sectors where investments were directed were five areas, namely automotive, food processing and manufacturing, pharmaceuticals, chemicals and manufacturing. They accounted for 70 percent of all investments originating in Europe. Between 2008 and 2012, the share of these five sectors was only 57 per cent.
Germany invests less in China
The survey found that European investment in China is becoming more concentrated. Companies that invest in China find it very difficult to let other investors in. Investment coming from Germany stands out the most, accounting for 43 percent of total investment coming from Europe.
