New data shows a significant resurgence of Chinese investment in Europe, with manufacturers establishing new facilities at an unprecedented rate. Known as Greenfield investments-where companies build new production sites rather than acquiring existing ones-these investments reached a peak value in 2025, totaling almost nine billion euros. This figure represents a substantial 51% increase compared to 2024, according to a new study conducted by the think tank Merics and the Rhodium Group, as reported by the “Handelsblatt”.
The EU Commission views this investment boom not as an accident, but as a direct result of China’s increasingly assertive policies. This includes protective tariffs placed on imported Chinese electric vehicles, which have made local production within Europe more appealing. “Europe is no longer a free buffet” stated Industry Commissioner Stéphane Séjourné. “We are open to investment, but we must protect our interests”. The automotive industry is the primary beneficiary of this trend; last year, Chinese companies invested a total of 7.6 billion euros in the sector, with more than 90% of those funds dedicated to the electric vehicle supply chain.
Despite the increase in foreign investment, Chinese exports to the EU are also rapidly climbing. The sheer volume of goods flowing into the EU has led some economists to warn of a potential “China shock”. In response, the EU Commission is preparing to legally mandate technology transfers in specific strategic sectors going forward-a measure modeled after China’s own practices. Commissioner Séjourné noted that “stricter requirements for foreign investments lead to more jobs and more value creation in Europe”.
