Chinese Investment in Europe Drops, Investment Screening Will Cut it More

Chinese Investment in Europe Drops, Investment Screening Will Cut it More
The financial district can be seen as a person runs in the sunshine on London's south bank, Britain on Feb. 23, 2019. Henry Nicholls/Reuters
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BERLIN—Chinese foreign direct investment (FDI) in Europe fell 40 percent in 2018, hitting its lowest level in four years, and stricter European Union rules are likely to curb Chinese M&A (mergers and acquisitions) activity even further, a survey showed on March 6.

China has introduced capital controls and tightened investment rules for state firms in an effort to stop money moving out of the country and to stabilize its currency.