January 2017

Foreign direct investment (FDI) has become an increasingly important part of the E.U.-China economic relationship. European companies have invested hundreds of billions of euros into the Chinese economy since the 1980s, and have made big bets on China’s transition to a new consumption-, service- and technology-driven economy. Chinese investment in Europe was relatively limited in past decades but has grown exponentially in recent years, creating new opportunities for Europe, but also concerns. This report reviews the patterns of Chinese FDI in Europe in 2016 and related policy discussions.