NewChinese investments in Europe soar to record US$18b in 2014

Chinese investments in Europe doubled last year to a record US$18 billion, according to a report by Baker & McKenzie, an international law firm.

And Europe had already received at least US$5.8 billion of Chinese investments less than two months into this year, with the US$4.3 billion acquisition of French resort company Club Med by Hong Kong-listed Fosun International, and the US$1.5 billion acquisition of France's Louvre Hotels, Europe's second-largest hotel group, by state-owned Shanghai Jin Jiang International Hotels, it said.

"A more substantial downturn in the Chinese economy might impact the willingness to invest overseas," said Thomas Gilles, the chairman of the firm's EMEA-China group. "But we remain bullish that the next decade will see a further expansion in Chinese investment into the [European Union]."

The surge in Chinese investments in Europe last year followed a drop to about US$9 billion in 2013 from US$13 billion in 2012 because of a decline in investment in energy and materials, the report said.

Britain was the European nation that received the most Chinese investment last year, at US$5.1 billion, followed by Italy with US$3.5 billion, the Netherlands US$2.3 billion and Portugal US$2 billion.

The European sector that received the most Chinese investment last year was agriculture and food at US$4.1 billion, followed by energy with US$3.7 billion, property US$3 billion, car-making US$2.2 billion and financial services US$1.7 billion.