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Chinese investment in Europe record high

dpa logodpa 11/01/2017

A report estimates Chinese investment in the EU grew by 76% to 35.1 billion euros ($A50 billion) in 2016, dwarfing the opposite flow of 7.7 billion euros.

Chinese outbound foreign direct investment (OFDI) soared to a record high in 2016 to reach nearly $US200 billion ($A270 billion), a report says.

The European Union continues to be the favourite destination for Chinese investors, however, imbalances are growing as Chinese investors spent four times as much on acquisitions in the EU last year as European investors did in China.

The study by research firm Rhodium Group and the Mercator Institute for China Studies estimated that Chinese direct investment in the EU grew by 76 per cent to 35.1 billion euro ($A50 billion) in 2016, dwarfing the opposite flow of 7.7 billion euro.

"The increase in Chinese OFDI was so dramatic in 2016 that China's leadership is now stepping on brakes on the pace of capital outflows ... Beijing has already taken steps to tighten reviews and crack down on illegitimate transactions," the report said.

The authors attributed some European companies' hesitance to invest in China to slowing economic growth in China as well as hurdles for access to the country's markets.

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