Europe gaining importance in China’s foreign investment


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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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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