Chinese Multinationals in Europe

Since 2013, China is the third largest foreign investor in the world and Europe is a major destination for Chinese investing firms, especially the largest European economies where the great majority of their investments are concentrated. In this chapter, we provide a comprehensive map of Chinese Foreign Direct Investments (FDI) in Europe, taking into account their distribution by country, sector, entry-mode and business activity. The empirical analysis relies on firm-level data compiled from diverse data sources on greenfield investments and Merger & Acquisitions (M&As). We show that Chinese FDI in Europe are very concentrated in a few host countries and in a few sectors, namely automotive, communications, electronics, machinery and engines.