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EU Firms Help Chinese Companies Expand into Europe

Financial Times Companies •
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European politicians urge companies to de-risk from China, but many German multinationals are instead partnering with Chinese firms going global. A study by AHK Greater China found 36% of members see "Chinese firms going global" as their top opportunity, while 68% already engage with Chinese overseas investment. Chinese outbound direct investment rose 7.1% last year to $174.4bn, driven by advanced EV and robotics manufacturers seeking higher margins or avoiding tariffs.

German companies assist in five ways: supplying products to Chinese overseas operations, helping meet foreign compliance standards, providing international experience, jointly expanding into new markets, and following partners into third countries. Examples include an automotive supplier using a "factory-in-factory" model in south-east Asia, a global logistics provider offering brand recognition in Europe, and a technology supplier helping with advanced driver-assistance systems compliance.

A key motivation is learning "China speed" — developing products three times faster than European rivals. However, Oliver Oehms, executive director of AHK Greater China, notes the window is fleeting: European firms estimate 18 months before Chinese partners master these capabilities independently. Meanwhile, Brussels worries about European companies helping Chinese rivals gain global market share amid rising geopolitical tensions.