Money talks as EU establishes commanding lead over the US
Chinese investment has been rising rapidly in both the United States and the European Union, but the EU has attracted almost twice as much investment as the US in recent years, according to a report from an organization that monitors global financial trends on Monday.
This was due in part to the eurozone's thirst for investment and a difference in security concerns between the US and the EU, analysts said.
Chinese investment in the EU hit more than $10 billion annually for the past two years, according to a report from Rhodium Group in New York. The figure for the US soared to $6.5 billion last year, a massive increase in the annual investments of less than $1 billion before 2010.
On Monday, China Petroleum & Chemical Corp said it will spend $1.02 billion to buy half of Chesapeake Energy Corp's Mississippi Lime oil and gas properties in Oklahoma to increase its presence in the booming North American shale gas industry.
Europeans have extended a warmer welcome to Chinese investors than their US counterparts, according to Rhodium's research, especially in the high-tech sector.
The eurozone debt crisis has presented investors with a number of opportunities.
According to Rhodium, investors from China spent $6 billion on the industrial machinery and vehicle sector in Europe, compared with less than $3 billion in the equivalent sectors in the US.
"Europe is a comparatively freer market than the US, exerting less interference on commercial and business activities," said Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a think tank affiliated with the Ministry of Commerce.
Huo also said the European debt crisis eases access for Chinese investors.
"The region has world-leading manufacturers but many are struggling for capital," he said.
Changsha-based Sany Heavy Industry Co Ltd purchased German concrete pump maker Putzmeister last year for 360 million euros ($475 million).
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