Asian companies, particularly those in China, are undergoing a structural transformation in their supply chains, with many redirecting investments towards Europe amid a decoupling from the US, according to a senior banker at ING.<\/p>\n
As Washington continues to negotiate with trade partners, companies active in the region \u2013 both local and international \u2013 recognised the need to diversify their supply chains, said Uday Sareen, CEO and head of wholesale banking for Asia-Pacific at the Dutch bank.<\/p>\n
\u201cWe see a structural change in supply chain realignment,\u201d he said in an interview, noting that ING had collaborated with over 700 international corporations and a similar number of Asian firms across various sectors in the Asia-Pacific region. \u201cThe US tariff scenario is a significant component of costs for manufacturers and the supply chain.\u201d<\/p>\n
Chinese foreign direct investment (FDI) in the EU and UK jumped 47 per cent to \u20ac10 billion (US$11.7 billion) in 2024 from a year earlier \u2013 the first significant rebound in Chinese investment in Europe since 2016, according to research provider Rhodium Group\u2019s China cross-border monitor.<\/p>\n
The two markets\u2019 share of total Chinese FDI last year rose to 19.1 per cent from 15.4 per cent in 2023. The US attracted less than \u20ac2 billion or 4 per cent of global Chinese outbound FDI in 2024.<\/p>\n
Projects related to electric vehicles (EVs) led the tally in Europe, pulling in \u20ac4.9 billion, or 83 per cent of all Chinese greenfield FDI last year. Greenfield investment means building new business operations from scratch, rather than acquiring existing firms.<\/p>\n
Among notable ongoing Chinese investments in Europe, Contemporary Amperex Technol\u00adogy, the world\u2019s largest EV battery producer, is expected to begin production at its \u20ac7.3 billion factory in Hungary at the end of 2025. BYD\u2019s first EU factory, in Hungary, is due to start production next year. The world\u2019s largest EV maker is also building a plant in Turkey, taking advantage of the nation\u2019s EU customs-union agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"Asian companies, particularly those in China, are undergoing a structural transformation in their supply chains, with many redirecting…\n","protected":false},"author":2,"featured_media":461864,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[9098,521,11410,154607,1550,1395,28901,57387,2000,299,5187,12726,81899,3749,136568,978],"class_list":{"0":"post-461863","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-alibaba-group-holding","9":"tag-asia","10":"tag-asia-pacific","11":"tag-asian-companies","12":"tag-byd","13":"tag-china","14":"tag-chinese-companies","15":"tag-contemporary-amperex-technology","16":"tag-eu","17":"tag-europe","18":"tag-european","19":"tag-ev","20":"tag-haier","21":"tag-hong-kong","22":"tag-ing","23":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115290703366390027","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/461863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=461863"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/461863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/461864"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=461863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=461863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=461863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}