Chinese greenfield investment in Europe reaches record high

Chinese investment in Europe reached a new record in 2025, with more ‌factories being built than ever before, German business daily Handelsblatt reported on Monday.

Greenfield investment—where foreign investors build new production facilities rather than buy existing companies—reached nearly 9 billion euros ($10.49 billion), up 51% compared to 2024, the report said, citing a study by think tanks Merics and Rhodium Group.

Chinese ‌direct investment amounted to 16.8 billion euros in 2025, up 67% year-on-year, reaching the highest level since 2018, the study found.

Europe's automotive industry was a main focus, with investments in that sector totalling 7.6 billion euros, 93% of which focused on supply chains for electric vehicles.

About Greenfield Investment:

Greenfield investment refers to a type of foreign direct investment in which a company establishes a completely new business operation in another country from the ground up.

Instead of purchasing or merging with an existing company, the investor builds new facilities and infrastructure.

For example, constructing factories, opening research and development centers, building battery production plants, creating logistics and distribution hubs, or setting up new corporate offices.

Additionally, such investments are often seen as a sign of long-term economic commitment because they usually generate jobs, expand local industries, and contribute to infrastructure development in the host country.