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European investment in China concentrates more on handful of large firms -report

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European investment in China is growing more concentrated with a handful of large firms particularly from Germany doubling down on their bets while virtually no new players seek to enter the market, according to a new report by research organization Rhodium Group.

, accounted for a third of all European investment into China from 2018 to 2021, according to the report.

"European investment has grown much more concentrated, both in terms of the companies that are investing there, the countries they come from, and the sectors in which they operate," the authors wrote. Five sectors - autos, food processing, pharma/biotech, chemicals and consumer products manufacturing - now make up nearly 70% of all FDI, compared with 57% in 2008-2012 and 65% in 2013-2017.

 

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