Scalpel from Europe to Chinese companies: investments fell sharply

China’s total investment level in the EU and UK fell 22 percent to 7.9 billion euros in 2022, the lowest level in 10 years. The level of investment had increased to 47.4 billion in 2016.

According to a study by research firm Rhodium Group and Berlin-based think tank Merics, the 22 percent drop in investment in 2022 is a product of Europe’s latest moves toward China.

ENTERED REGULATORS

According to the report cited by the Financial Times, the researchers believe that at least 10 of the 16 investment deals pursued by Chinese institutions in 2022 will not be completed due to objections from the authorities, particularly in the United Kingdom, Germany, Italy and Denmark. .

According to studies, most semiconductor purchases with Germany and the United Kingdom have been blocked. The agreed deals were canceled after the imposition of regulatory provisions, according to the report.

The researchers noted that their study of a total of 16 investment deals was not exhaustive because government reviews are often not made public.

BLOCKED GIANT PURCHASES

Here are some of the deals blocked by European regulators:

* China’s Sai MicroElectronics wanted to buy the automotive chip assets of Germany’s Elmos Semiconductor. However, this purchase was banned by Germany.

* Hong Kong’s Super Orange wanted to buy electronic design company Pulsic, but the UK halted this transaction.

* Italy has canceled the sale of the Alpi Aviation military drone group to Chinese companies.

“In 2023, the review mechanisms will also enter into force retroactively in Belgium, Estonia and Ireland. The Netherlands plans to launch a broader review system that will allow a retrospective review of sensitive technologies and energies.