Chinese people prefer to buy German companies

German companies continue to be the favorite target of Chinese investors in Europe. According to a study by consulting firm EY, Chinese companies have already spent $ 15 billion in acquisitions and investments in Europe, including $ 10 billion in Germany this year.

In Germany, Chinese investors rank fourth behind American, British and Swiss investors. At the same time, their interest in industrial enterprises is high, but they are also buying more and more goods and consumer goods. .

Tensions with the United States could now "increase the European willingness to attract Chinese investors". Expert Yi Sun. On the political front, more trade cooperation is discussed: EU-China summit, EU Council President Donald Tusk and European Commission President Jean-Claude Juncker meet with Chinese Premier Li Keqiang [19659005] The entry of the automaker Geely to Daimler by Ningbo Jifeng

The number of acquisitions and the volume of investment in Europe are now lower than in previous years. But "if in Europe, an attractive company is considered a redemption target, it's still a Chinese company among the interested," said Yi Sun.

Concern for liquidation of expertise

There is much more 'political concern and concern over the sale of know-how, especially among high-tech companies and services public, "said Yi Sun. At the same time, sellers have become more cautious – they have often demanded high guarantees from Chinese buyers even when signing the contract.

Bank guarantees for Chinese investors are now more difficult to obtain. And sometimes investors in the People's Republic must also make concessions in terms of jobs and headquarters.

Major transactions fail

Some important transactions have failed or are still in limbo. For example, the Portuguese utility company EDP rejected a Chinese purchase offer, in Germany the entry of the state-owned Chinese State Grid into the 50 Hertz network operator does not it's not materialized.

Chinese investments have also prevented some companies from closing, according to Yi Sun. "Many deals have again affected insolvent companies this year." (For a detailed analysis of Chinese investment and its long-term implications for the German economy, read here.)