Analysis of Industrial Trends and Future Outlook of Chinese Investment in Europe

2025-12-15 14:31:13
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Special Report by the China-Europe Business Association (CEBA)

Against the backdrop of profound reshaping of the global economic system and accelerated restructuring of industrial chains, China-Europe economic and trade relations have entered a strategically significant new phase. As two of the world’s most important economies, China and Europe’s complementarity in industrial structure, technological advantages, market demand, and policy orientation has opened up increasingly broad development space for investment and industrial synergy between the two sides. Europe is advancing green transition and digitalization, while Chinese enterprises are accelerating technological innovation and industrial upgrading—this context has laid a highly aligned cooperative foundation for both parties in multiple key areas such as new energy vehicles, renewable energy, life sciences, high-end equipment, and the digital economy.

In recent years, Chinese investment in Europe has demonstrated characteristics of greater diversification, industrialization, and long-term orientation. The investment structure has extended from traditional sectors to green technology, advanced manufacturing, and future industries, while cooperation models have evolved from single capital export to in-depth participation in local industrial chains, technological exchange, and joint innovation. These changes reflect the practical needs of Chinese and European enterprises to seize opportunities in the restructuring of global value chains and jointly promote industrial upgrading amid the new economic and policy environment.

This report aims to systematically sort out the main trends of Chinese investment in Europe, analyze the development dynamics of key industries, showcase the cooperative characteristics of different regions, and predict potential future cooperation directions. Through a comprehensive analysis of industrial chains, policy environments, and regional layouts, this report intends to provide forward-looking references for government departments, industry organizations, enterprise decision-makers, and industrial research institutions, so as to promote interaction and development between the two sides at a higher level, in broader fields, and in a more sustainable direction.

I. Structural Complementarity and Synergistic Foundation of China-Europe Economic Relations

For a long time, the China-Europe economic system has been characterized by complementarity and openness, creating a sound foundation for investment and industrial cooperation between enterprises of both sides.

1. Deepened Cooperation Driven by Structural Complementarity

China boasts leading manufacturing capabilities, a complete industrial chain system, and sustained growth in R&D investment;

Europe holds obvious advantages in high-end technologies, standard systems, engineering capabilities, and high-quality markets.

This complementarity has created natural cooperation space for both parties in strategic industries such as green energy, advanced manufacturing, and smart transportation.

2. Alignment of Market Demand and Development Strategies

The EU’s green transition and digitalization strategies are highly compatible with the industrial advantages of Chinese enterprises;

The superposition of Chinese enterprises’ "Going Global" strategy and Europe’s structural demand for foreign capital provides sustained momentum for cooperation.

3. Gradual Formation of a Win-Win Synergistic Paradigm

In fields such as new energy vehicles, photovoltaic energy, and intelligent equipment, China and Europe have established a sound paradigm of supply chain collaboration, technological exchange, and joint market development, providing replicable experience for future investment expansion.

II. Key Industries and Development Dynamics of Chinese Investment in Europe

1. New Energy Vehicles and Intelligent Mobility Systems

The new energy vehicle industrial chain has become one of the most active areas for Chinese investment in Europe.

Accelerated localization of whole-vehicle manufacturing (Chinese automakers have laid out factories in Hungary, the UK, etc.);

In-depth penetration of the battery industrial chain into Europe’s core manufacturing regions (CATL, Envision Group, etc. have invested in large-scale projects in Germany and Hungary);

Deepened cooperation in intelligent mobility and charging networks.

The green transition goals of the automotive industry (such as the EU’s 2035 ban on gasoline and diesel vehicles) have created structural opportunities for Chinese enterprises to enter the market.

2. Expanding Cooperation in Renewable Energy and Green Technology

Chinese enterprises’ technological and industrial chain advantages in photovoltaic, wind power, energy storage, and other fields have made them important partners in Europe’s energy transition.

Photovoltaic modules and inverters maintain a leading market share in Europe;

Energy storage technology and energy digitalization systems have become new growth drivers for cooperation;

Southern European countries (Spain, Italy, Portugal) have emerged as new growth centers for clean energy projects.

Europe’s accelerated process of energy autonomy and decarbonization has opened up broader space for bilateral cooperation.

3. High-End Equipment Manufacturing and Smart Factory Construction

In fields such as industrial automation, machine tools, power equipment, and rail transit, Chinese enterprises are exploring industrial upgrading opportunities together with Europe.

The high-end equipment supply chain is closely integrated with Europe’s industrial system;

Intelligent manufacturing solutions are being accelerated in Central and Eastern Europe;

Green and smart factories have become a new direction for bilateral cooperation.

This field reflects the high complementarity between China and Europe in engineering technology and industrial application.

4. Rising Cooperation in Healthcare and Life Sciences

The integration of Chinese capital with Europe’s innovation ecosystem has become more diversified:

Increased biopharmaceutical R&D cooperation projects;

Expanded cooperation in medical device approval and clinical trials;

Innovative pharmaceutical enterprises have become hotspots for cross-border investment.

The openness and technological synergy in the life sciences field make it one of the most promising cooperation sectors for future growth.

5. Vitality Maintained in the Digital Economy and Cutting-Edge Technology Fields

Despite the impact of review and regulatory factors, Chinese enterprises remain significantly involved in Europe’s digitalization process:

Sustained cooperation in 5G and next-generation communication technologies in some markets;

Steady progress in projects such as industrial internet, smart grids, and smart cities;

Cooperation in AI and computing infrastructure has gradually shown characteristics of localization and compliance.

It is expected that future technological cooperation will focus more on practical industrial scenarios rather than single equipment export.

III. Regional Layout Characteristics: A New Pattern of Multi-Level Cooperation Taking Shape

1. Central and Eastern Europe as the Main Region for Manufacturing and Industrial Chain Layout

Countries such as Hungary, Poland, and Serbia have become strategic highlands for Chinese enterprise investment:

Outstanding cost advantages and policy friendliness;

Superior geographical location, facilitating coverage of the entire EU market;

The new energy vehicle and battery industrial chains have become the largest-scale cooperation sectors.

2. Western Europe Remaining the Core Region for Technological Cooperation and High-End Manufacturing

Germany, France, the Netherlands, and Nordic countries still hold global advantages in:

Advanced manufacturing technology

Industrial software

Biotechnology

Engineering equipment

They are key regions for Chinese enterprises to carry out technological collaboration and high-end layout.

3. Southern Europe Emerging as a Growth Area for Green Energy and Infrastructure Projects

Southern European countries welcome green investment and are endowed with abundant solar and wind energy resources, making them important destinations for Chinese enterprises’ energy projects.

IV. Future Outlook: Five Major Trends in China-Europe Cooperation

Trend 1: New Energy Vehicles and Green Energy to Continue Leading Cooperation Directions

The green industrial chain centered on whole vehicles, batteries, photovoltaics, and energy storage will become the main axis of China-Europe cooperation in the next decade.

Trend 2: Localized and Sustainable Investment Models to Become Mainstream

Chinese enterprises will further strengthen:

Local recruitment and supply chain localization;

Construction of compliance systems;

Long-term strategic collaboration with European partners.

This will be an important path to mitigate market and political uncertainties.

Trend 3: Expanding Cooperation Space in High-End Manufacturing and Industrial Digitalization

With the growing demand for industrial upgrading and replacement in Europe, Chinese enterprises’ equipment, solutions, and engineering experience will usher in new opportunities.

Trend 4: Green Technology, Hydrogen Energy, and Circular Economy to Become New Growth Drivers for Cooperation

Both parties will demonstrate greater synergistic potential in cutting-edge clean technologies, including:

Hydrogen energy equipment and hydrogen storage/transportation technology;

Low-carbon materials;

Carbon Capture, Utilization, and Storage (CCUS) systems.

Trend 5: Geopolitics and Regulatory Environment to Remain Challenging

Bilateral investment must adapt to:

Stricter foreign investment reviews;

Changes in industrial policies and subsidy systems;

Uncertainties brought by the geoeconomic fragmentation of global supply chains.

Chinese and European enterprises need to invest more resources in risk management, policy understanding, and communication mechanisms.

V. Marching Towards a New Phase of Sustainable and High-Quality China-Europe Industrial Cooperation

Under the new situation of global economic restructuring, China-Europe cooperation not only has a complementary foundation but also meets the strategic demand for jointly promoting green transition and industrial upgrading. The development of Chinese investment in Europe is undergoing a transformation from "scale expansion" to "quality improvement" and "local deep cultivation".

In the future, the business community of China and Europe is expected to jointly build a more stable, sustainable, and highly mutually beneficial new pattern of industrial cooperation under an open, cooperative, and pragmatic framework.