China outbound: prepare for an avalanche

Author: Tom Young | Published: 18 Oct 2017

The wave of Chinese outbound M&A into Europe is only the start of the trend and the country’s domestic economy is stronger than many in the west believe according to speakers at last week’s IBA annual conference. 

Chinese outbound foreign direct investment (FDI) into Europe jumped to almost €35 billion ($41 billion) in 2016. This stands in stark contrast with a further drop in investment by European firms in China.

The growing imbalance in two-way FDI flows, persisting asymmetries in market access, and increased Chinese acquisitions of advanced technology and infrastructure assets have...