China’s Investment in Europe Hits 7-Year High as Scrutiny Grows

Amid sluggish demand and low profit margins at home, Chinese companies favor exports over direct investment in the continent, a report finds.

A plant construction site for Chinese battery manufacturer CATL near Hungary's second largest city Debrecen on May 5, 2024. The company is building its second European factory with support from the Hungarian government. Attila Kisbenedek/AFP via Getty Images

Chinese investments in Europe have hit a seven-year high, but momentum is likely to slow down as Chinese manufacturers find exports more attractive, according to a new analysis.

China’s investment in Europe—including the European Union and the UK—reached 16.8 billion euros ($19.5 billion) in 2025, a 67 percent increase from a year earlier and the highest level since 2018, according to a May 20 report by global consultancy firm Rhodium Group and Mercator Institute for China Studies, a Berlin-based think tank.