In 2023, Chinese companies invested 6.8 billion euros ($7.4 billion) in the 27 European Union countries and the UK, marking the lowest figure since 2010. The majority of this investment, around 70%, was directed towards EV-related ventures, particularly in the field of batteries.
While Chinese outbound investment reached its highest point since 2016 globally, the relationship between Europe and China faces challenges. The EU’s planned imposition of tariffs on Chinese EV exports may lead to retaliatory measures from Beijing, exacerbating this strained dynamic.
Hungary received the lion’s share of Chinese investment in Europe last year, with 3 billion euros accounting for 44% of the total. Key projects include an 8 billion euro battery factory by Contemporary Amperex Technology Co. and a cathode factory by Zhejiang Huayou Cobalt Co., announced in June.
Following Chinese President Xi Jinping’s visit to Hungary, a series of agreements are expected to boost further investment in the region. The report by Rhodium Group highlights various new battery projects by Chinese investors across Europe, signaling a continued focus on Hungary and the EV sector.
Once operational, these projects would enable Chinese firms to circumvent tariffs by manufacturing in Europe, while benefiting from proximity to suppliers and customers, as well as reduced shipping costs.
