Chinese investment in Europe soars 67% in 2025, led by EVs and M&A
Chinese investment in Europe surged in 2025, with total foreign direct investment (FDI) climbing by 67 percent. The combined figure for the EU and UK reached €16.8 billion, marking a significant rebound. Europe now accounts for nearly a quarter of all global Chinese FDI. The sharp increase was driven largely by mergers and acquisitions (M&A), which jumped by 89 percent to €7.9 billion. Greenfield investments also played a major role, rising by 51 percent to €8.9 billion.
The automotive sector became a key focus, attracting €7.6 billion in Chinese funding. A striking 93 percent of these investments targeted the electric vehicle (EV) supply chain. Alongside FDI growth, Chinese exports of goods to Europe rose by 9 percent in the same period.
Germany remained a top destination, securing €2.5 billion in Chinese investments. Hungary followed closely with €3.9 billion, while France drew €1.9 billion. The 2025 figures highlight Europe’s growing importance as a destination for Chinese capital. The automotive sector, particularly EV-related projects, led the way in attracting funding. With M&A and greenfield investments both rising sharply, the trend suggests deeper economic ties between China and Europe.
