Investing in Europe

Asia, Europe and Africa are the top three destinations for China's ODI. But since the European debt crisis broke out, Europe has led the growth and will probably continue to do so.

In 2011, China's investment in the European Union jumped by 94 percent year-on-year to $4.28 billion. In Africa it increased 59 percent year-on-year, compared with the 1.8-percent growth in the nation's total ODI during the same period.

Recent research by the consultancy Rhodium Group and China International Capital Corporation showed that China's investment in Europe increased by as much as 200 percent last year to $10 billion.

China's investment scale is still quite small, but the nation is set to accelerate its overseas investment, and debt-stricken Europe will be a most attractive market for Chinese companies, the report said.

By the end of 2020, China's investment in the region will range between $250 and $500 billion, it predicted.

A recent example is Chinese construction equipment maker Sany Heavy Industry Co Ltd's announcement that it will pay 324 million euros ($426 million) for a 90-percent stake in Putzmeister, Germany's largest concrete pump maker.

"In the past, we had few Chinese clients, but the figure is growing, despite the high fees," said Tang from law firm Jones Day

"Africa, Latin America and Australia are their focus," she said. "But Europe also interests them greatly."

Since the second half of last year, Chinese officials have repeatedly said the European debt crisis provides huge opportunities for Chinese companies aspiring to invest overseas.

Premier Wen Jiabao said during his meeting with German Chancellor Angela Merkel early this year that China has neither the intention nor capability to "gobble up" the region.

During the past few months, many top Chinese leaders, including Wen and Vice-Premier Li Keqiang, paid official visits to a number of European nations, highlighting the importance that the Chinese government attaches to the debt-stricken continent.

During his 10-day official visit, Li witnessed the signing of a series of investment deals between China and European nations including Russia, Hungary and Belgium.

And in Belgium, China Investment Corporation, the nation's sovereign wealth fund, launched a mutual fund, the China-Belgium Mirror Fund, with a local investment company to help Chinese companies boost their investment in Belgium and throughout the European Union.

"Belgium will become a very important platform for Chinese companies to expand in all 27 member countries of the EU," said Li.