DIRECT-LINE FROM BLB ASIA DESK: Chinese investors seeking more know-how in Western countries

Last November Beijing Government, concerned about the perspective in Yuan evaluation, imposed some measures aimed to putting a break in outbound investments, often judged by the National Development and Reform Commission as too risky and not based on adequate due diligence.

In 2016 the exit flow of Chinese capital raised by 114% upon total volume of outbound investments compared to the previous year, for a total amount of 208,6 billion dollars invested in Europe and North America (showing a growth of, respectively, 201% and 412% compared to 2015). Even though the positive trend is not curbing this far, focus is shifting to new industries: Chinese firms, both private and State-owned, are now interested in the strongest business in technology, robotics and fintech sectors. The real expected return? New commercial and technologic know-how to be gained and imported back home. Such approach may let business and Government interests come to a meeting point. Undoubtedly, however, some European countries like Germany are worrying about possible risks caused by a pervasive presence in the domestic economy, both in terms of changing balances and of security of industrial and corporate data.