Chinese investment in Europe soars 67% in 2025, hitting €16.8 billion
Chinese investment in Europe surged in 2025, with total foreign direct investment (FDI) rising by 67 percent to €16.8 billion. The growth was driven by strong mergers and acquisitions (M&A) activity and a sharp increase in greenfield projects. Europe now accounts for nearly a quarter of all Chinese FDI worldwide, up from 17 percent the previous year.
M&A deals played a key role in the rebound, climbing 89 percent to €7.9 billion. Greenfield investments also grew significantly, rising 51 percent to €8.9 billion. However, while completed greenfield projects hit a record high, newly announced deals fell to €5.2 billion.
The automotive sector became a major focus, attracting €7.6 billion in Chinese investment. Of this, 93 percent went into the electric vehicle (EV) supply chain. Battery exports from China to Europe also jumped by 43 percent, contributing to a 9 percent overall increase in Chinese goods exports to the region. Hungary emerged as the top destination for Chinese FDI in 2025, receiving €3.9 billion. Meanwhile, France and Germany saw their shares of total Chinese FDI in Europe grow. France’s share doubled to 12 percent, while Germany’s rose to 15 percent, up from 10 percent in 2024.
The rise in Chinese investment highlights Europe’s growing importance as a destination for capital. With M&A and greenfield projects leading the way, sectors like automotive—particularly EVs—have become key areas of focus. The shift also reflects broader trends in trade, as Chinese exports to Europe continue to expand.
