BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/08
Nearly a third ($33 billion) of large investments of Chinese firms abroad last year went to Europe. About a fifth ($22 billion) went to the United States. Investment in Europe has increased in recent years, while investment in e.g. Africa has declined. Some of this shift reflects changes in the branches receiving the most investment. Investments in the energy and metal sectors, for example have fallen, while investment in transportation, finance and the tech sector are on the rise. Investment by branch and geographic region, however, fluctuates from year to year.
Last year, transportation and finance were the main target areas for Chinese firms in Europe. The largest investments came from state-owned ChemChina (nearly $8 billion in the Italian Pirelli), the HNA Group (nearly $3 billion for acquisitions of aerospace firms in Switzerland and Ireland), and China Minsheng Investment (over $2 billion for the Swedish reinsurer Sirius). ChemChina last month announced plans to buy the Swiss agriculture company Syngenta for $43 billion, which would make it the largest foreign investment ever of a Chinese firm.