Dentons, the global law firm, hosted its inaugural China Investment Forum in Luxembourg this week. “As an important hub for Chinese investments into Europe, more than 40% of Chinese overseas direct investments in the EU route through Luxembourg,” commented Frédéric Feyten, Managing Partner of Dentons in Luxembourg. “We are proud that the Grand Duchy is also home to the European headquarters of seven Chinese banks.”
Following a record year of Chinese investments in Europe in 2016, 2017 saw a significant drop. In 2018, Chinese outbound M&A is facing more and more risks and challenges, namely Chinese governmental changes in policy and the EU FDI screening project, amongst others. Despite these challenges, Europe remains an attractive destination for Chinese investors.
"As the only global law firm with real market coverage – 45 offices on the ground – in China, we were delighted to host our China Investment Forum in Luxembourg this week," said Tomasz Dabrowski, Europe Chief Executive Officer. "The event also marked the launch of our Dentons Europe China Desk, led from Luxembourg by the experienced Dr. Shaohui Zhang, to better serve the growing needs of Chinese investors in Europe.”
Panelists at the Forum shared their insights and experiences of the risks and changing rules for Chinese M&A in the EU, and explored the financing behind the investments and the impact of evolving EU regulations on Chinese banks. Pierre Gramegna, Luxembourg Minister of Finance, delivered a keynote speech on the significant role that Luxembourg continues to play in 40 years of EU-China investment.
"This year marks the 40th anniversary of China’s reform and opening policy, and for more than a decade China’s outbound investment has been a hot topic," added Dr. Shaohui Zhang, Head of Dentons Europe China Desk. "It was encouraging to hear from our panelists that, although the pressures on Chinese investment into the EU continue to increase, the appetite of Chinese companies for acquisitions remains relatively strong."
