© 2020 Datenna. All rights reserved
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.
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.
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.
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.
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:
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.
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.
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.
Contact us for a workshop or webinar and discuss your data needs with us.