Europe gaining importance in China’s foreign investment

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Chinese investments are expected to increasingly target Europe, driven by business synergies, high-tech content and the need for diversification in terms of currency and geography, Dagong Europe said in its latest report.

The European branch of Chinese rating agency Dagong Global said investments in Europe are driven partly by China’s aspiration to transform its local dominant players into global leaders and partly by its need to upgrade its domestic production base.

“Investments in Portugal, Italy, Greece, Spain, Poland and Hungary were primarily made to provide financial support to local infrastructure projects and facilitate trade, whereas deals in Britain, France, Germany, Sweden and Norway were mainly driven by China’s desire for technology,” the report said.

Dagong Europe estimated that in the short to medium term, a strong focus on sectors with high technological content, thorough know-how and strong brand recognition, will continue to drive Chinese investors’ interest in the automotive, engineering, machinery and utility sectors.

In the longer term, the Milan-based rating agency sees the focus moving to renewables, environmental technology and lifestyle sectors, as the environment and living standards gain importance in China.

“We expect to see an increasing focus on European infrastructure, energy, pharmaceuticals, automotives, telecommunication and manufacturing,” the report added.

China’s investments in Europe hit a record high in 2014, Richard Miratsky, head of the Corporate Analytical Team at Dagong Europe, highlighted.

“Utilities and high-tech sectors are definitely holding the attention of Chinese investors, but we see food and agriculture, commercial real estate and leisure and luxury gaining momentum in the medium term,” he said.

The increasing investments in European sectors and countries where assets no longer appear underpriced due to the prolonged adverse macroeconomic development over the past half-decade suggested that this is “a structural trend, not just a cyclical phenomenon,” the report added.

Sizable Chinese investments in Italian utilities and the recent agreement on the Chinese entrance to tyremaker Pirelli ranked Italy as the second most attractive country in the European Union after Britain, according to Dagong Europe.

 

 

Source : China Daily | April 23, 2015

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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