The report finds that Chinese investment into Europe has boomed from €6.1bn in 2010 to €79bn in 2018, with financial services representing the second largest investment sector. Meanwhile, the volume of EU foreign direct investment (FDI) into China still far exceeds China’s investments into Europe, growing at a compound annual growth rate (CAGR) of 6.7% since 2002, reaching €189.4bn in 2018, with a notable increase in the EU’s FDI allocation to China’s financial and insurance sector.
Our study argues that despite an increasingly challenging diplomatic backdrop between these two economic superpowers, the route to a more productive and stable relationship could be built around urgent shared goals, such as tackling the climate emergency and pandemic recovery, which must be underpinned by free-flowing global capital.
“The world must build back better after the pandemic, and the relationship already established between China and the EU in financial services will be a key factor. While the political overtones are sometimes challenging, there is a need to be pragmatic, and to find a productive way forward. Right now, the need for global cooperation and free flowing capital have never been more critical to tackle the climate emergency.”
“The data highlighted by the research showcases the evolution of financial integration between China and the EU and emphasises the need for continued cross border collaboration. The recent regulatory developments in China and the strong interest shown by global players in accessing the Chinese market and vice versa strongly suggests that the financial sector represents a veritable opportunity to foster a lucrative, long-lasting financial relationship.”
“This increased bilateralism represents a major shift in the global FS landscape and a watershed moment in Sino-European relations. The highly publicised differences between to two economic superpowers notwithstanding, there is a growing wealth of evidence to suggest that their respective financial services industries are strongly compatible and conducive to an increasingly symbiotic relationship.”
Partner, Regulatory Advisory Services, PwC Luxembourg
Tel: +352 49 48 48 4131
Director of China market, PwC Luxembourg
Tel: +352 49 48 48 3820