China-EU FDI Radar

The China-EU FDI Radar is an on-going research initiative aimed at providing greater transparency on Chinese investments in Europe. It currently covers 650+ acquisitions from 2010 up to the present. The data is made available to the public in an interactive map, indicating the level of Chinese state-influence for every acquisition. This indication is provided based on analysis of the ultimate beneficial ownership (UBO) by Datenna.

Click here for the full version of our: China-EU FDI Radar

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Making Chinese acquisitions in Europe more transparent

To determine the level of state influence, we used our proprietary algorithm which takes into account the entire shareholder structure, shares being pledged, level of state-control of any investors and other relevant factors. Since we developed this algorithm in-house, the indication of the state influence is to be considered as our professional opinion and should not be used for any investment screening decisions without additional deliberation with us. We are constantly updating the radar with new acquisitions. If you are missing data or spot a mistake, please notify us.

Chinese State-influence

Overall our research indicates 161 acquisitions where the Chinese State has a high level of influence (~25%). An acquisition with a high level of government influence (red dot on the map) means that the ultimate controlling shareholder is part of the Chinese government, for instance the State Council of the People’s Republic of China. Additionally for 103 acquisitions (15%) the level of state influence is categorized as medium (orange dot on the map). In these cases the Chinese government has a substantial stake in the acquiring company, but might not necessarily be seen as controlling. Finally, the majority of acquisitions (60%) has a low level of state influence (yellow dot). This indicates the Chinese government has no substantial influence in the acquiring company.

Sectors

With 83 acquisitions the machinery sector is the most popular among Chinese investors in Europe. Other large categories are automotive, consumer products, energy, health, ICT and electronics.

Countries

With 174 acquisitions Germany is the country with by far the largest amount of Chinese acquisitions. Other countries with many deals are the UK, France, Italy, The Netherlands and Sweden.

Want to learn more about our research?

In the media

On the 30th of September 2020 the China-EU FDI Radar research was published in the Wall Street Journal.

Our research generated great interest from all over the world and was shared actively on social media and international press. Below an overview of some of the coverage:

Wall Street Journal: Behind China’s Decade of European Deals, State Investors Evade Notice
RTL Z (Dutch TV): The government influence of China in Europa larger than expected
Volkskrant: European companies owned by the Chinese state, without them knowing
Elsevier Magazine: Dutch research shows Chinese state-owned companies secretly buy European companies
BNR Radio: VVD requesting clarification on Chinese influence in acquisitions
Børse: The EU has now woken up – screening purchases from China
Le Temps: Beijing’s shadow hangs over Chinese investments in Switzerland
Fokus: The dragon that is never measured
Il Poste: State-owned companies are often behind Chinese investments in Europe
Swiss Info: More than half of Chinese acquisitions in Switzerland have state fingerprint
Il Formiche: Beijing’s hand behind the business in the EU
Money BG: How Beijing’s long arm has remained invisible in a decade of deals in Europe
Les Echos Weekend: How China is getting hold of European nuggets

The large attention in international press also sparked a political debate with parliamentary questions asked to the European Commission and the Ministry of Foreign Affairs in The Netherlands.

European Parliament: Questions to the Commission
Dutch Parliament: Questions to the ministers

Recently Datenna was also part of a discussion in the Dutch newspaper ‘Financieel Dagblad’ (FD). According to Datenna the challenge for FDI screening policymakers is determining what level of state-control you will allow – and how to verify this. Having the best information available is essential in these assessments.

"The challenge for FDI screening policymakers is determining what level of state-control you will allow - and how to verify this."

What we do

Datenna creates data platforms and research reports which deliver decision-relevant insights and data to our clients. We develop these services either in-house or in collaboration with partners and clients, building on our decade-long experience with the Chinese industry.

Our unique data platforms enable our clients to track Chinese governmental subsidies granted to universities and companies, explore company profiles and shareholder structures, investigate government links, state financing and subsidies, and identify technological hot-spots and research trends.

"Our goal is to solve the information imbalance between Europe and China, which will help create a level playing field and paves the way for sustainable partnerships and global economic growth."

Company ownership platform

Research subsidy platform