But study warns that new project pipeline appears to be drying up, as Chinese investors face pressure from both Beijing and Brussels
3-MIN READ3-MINXiaofei Xuin ParisPublished: 5:04pm, 20 May 2026Chinese investment in Europe hit a seven-year high of €16.8 billion (US$19.5 billion) in 2025, driven by a strong rebound in mergers and acquisitions (M&A) and record greenfield completions, a new report has found.
Chinese foreign direct investment in Europe – including the United Kingdom – rose 67 per cent year on year in 2025, as China’s investors increasingly focused on the region. Europe’s share of China’s total global FDI jumped from 17 per cent to nearly a quarter, according to the two think tanks.
M&A activity drove the rebound, rising 89 per cent year on year to €7.9 billion, while greenfield investment hit a record €8.9 billion, retaining its position as the primary channel for Chinese investment in the region.
Meanwhile, Berlin and Paris caught up at a stunning speed. Completed Chinese FDI in Germany almost tripled to €2.5 billion and quadrupled in France to €1.9 billion. Europe’s traditional “big three” economies – France, Germany and the UK – saw their combined share of Chinese investment leap from 23 per cent to 34 per cent in 2025.
