【Text by Guan察者网 Liu Bai】
"The pearl of French technology may become a prey of China." Chinese companies' acquisitions of French enterprises have left French scholars with mixed feelings.
The French newspaper Le Monde reported on July 10 that three major French companies have been recently acquired by Chinese capital, involving key industrial sectors such as chemicals, automobiles, and energy in France, indicating that Chinese enterprises are accelerating their entry into the European market.
Industry figures in France said that if the national level fails to provide targeted assistance to struggling enterprises, these enterprises often have to rely on Chinese buyers once they face difficulties. With the ongoing Sino-US trade war, this risk may become a structural issue.
In April this year, the Chinese chemical giant Wanhua Group, through its Hungarian subsidiary Borsodchem, acquired the special diisocyanate business of Vencorex, a flagship French chemical company, which has been approved by the Lyon Commercial Court in France.
Subsequently, in May, DSBJ, a PCB manufacturer based in Suzhou, spent 100 million euros to acquire GMD Group, a French automotive parts supplier. This company has more than a dozen factories in France, supplying automakers such as Renault and Stellantis.
Almost simultaneously, after approval from the Albi Commercial Court, China's Wanshun Group successfully acquired Safra, a French hydrogen-powered bus manufacturer.
Photo: The chemical plant of Vencorex, a flagship French chemical enterprise, located in Pont-de-Claix
None of these French enterprises were exception, all of them had fallen into difficulties, either heavily indebted or in judicial reorganization. The newspaper Le Monde expressed amazement that they, as representatives of key industries in France such as chemicals, automobiles, and energy, have now been taken over by Chinese entities.
According to data from the French Ministry of Economy, Chinese investment in France began to grow from 2010, increasing tenfold between 2010 and 2017, reaching 15 billion euros in 2017. After the pandemic, Chinese investment in France remained active, reaching 13.5 billion euros in 2023, an increase of 5% compared to the previous year. However, investment in 2024 declined somewhat, largely due to measures taken by France to protect its domestic industry.
"In recent years, Chinese investment in France has seen ups and downs," analyzed Olivier Lluansi, an expert on industrial policy at the French National Institute of Technology. "Investment momentum weakened in 2024, but it has rebounded in recent months, although the scale is not yet significant. China's main goal is still to enter the entire European market, and France is not its preferred gateway."
Although China ranks among the top ten countries investing in France, according to data from the research institution Trendeo, China ranked eighth in terms of investment amount and corporate acquisitions between 2020 and 2025, far behind the United States and the United Kingdom.
David Cousquer, founder of Trendeo, pointed out: "It is difficult to say that China has a systematic strategy targeting French enterprises, but it can be seen that Chinese investment in France has evolved: from early participation in French enterprises and small-scale direct investments to larger projects. These types of projects were originally more concentrated in Central and Eastern Europe."
In recent years, one typical example of the upgrading of Chinese enterprises towards high-end sectors is the layout in the field of energy transition. For example: In 2021, the Chinese company Envision invested 2 billion euros to build a battery factory in Douai, northern France; In 2024, the Chinese lithium battery manufacturer XTC partnered with Orano, a French nuclear company, to build a lithium battery cathode material factory in Dunkirk, with an investment of 1.5 billion euros; Also in 2024, the Chinese photovoltaic company DAS Solar announced plans to invest in building a super factory for solar panel components in the department of Doubs.
Orano, a French mining company
As of now, according to data from the French Business France, Chinese enterprises have set up about 900 subsidiaries in France, employing over 50,000 people. These enterprises are mostly large conglomerates or state-owned enterprises, including Fosun Group, which has entered the French tourism, luxury goods, and food industries; Jinjiang International has invested in Accor and Louvre hotel groups. In the electronics sector, Tsinghua Unigroup acquired Linxens, a French chip component manufacturer; China Bank and the Export-Import Bank are also active in the French financial sector.
Despite this, France is not China's priority partner in Europe. Hungary is more attractive. Since 2023, Hungary, led by Orbán, has attracted 44% of Chinese investment in the European electric vehicle sector, involving multiple projects from BYD, CATL, and Liangyou Cobalt, exceeding the combined total of Germany, France, and the UK.
Le Monde stated that as more French enterprises fall into difficulty, it may stimulate China to increase its acquisition efforts. France has identified a list of sensitive industries. If foreign groups want to acquire enterprises in these industries, they must obtain prior approval. In addition to the defense and nuclear energy sectors, this list also includes investments in telecommunications, public health, transportation, information technology, and critical raw materials.
"Some of France's technological pearls may become prey for China, especially when the country fails to provide targeted assistance to struggling enterprises, such as failing to mobilize French savings to establish acquisition or investment funds, leading enterprises to often rely on Chinese buyers when they face difficulties," said Olivier Lluansi.
The article worries that with the continued Sino-US trade war, this risk may become a structural problem. The U.S. imposing heavy tariffs on Chinese exported products will inevitably force China to transfer some excess production capacity to other regions, with Europe being one of them. At that time, this Asian power may tend to lay out in more European countries to sell its goods.
According to China Customs data, in May 2025, China's exports to the EU increased by 12% year-on-year, while exports to the U.S. fell by 34.5% during the same period. However, growth among European countries was uneven: Netherlands grew by 7%, Italy only by 1.85%; but Germany grew by 21%, and France even surged by 24%.
According to statistics published by the European Commission, this growth involves multiple product categories: textiles, metal products, machinery, plastic products, etc.
Actually, the so-called "concerns" about Chinese investment are not new. As early as 2018, German media had sensationalized that Chinese investors were conducting large-scale corporate acquisitions in Europe, especially some important enterprises in relevant industries were acquired by Chinese parties, causing unease among politicians and the economic community.
The spokesperson for the Chinese Foreign Ministry emphasized that trade and investment cooperation is an important driving force for the development of Sino-European relations, and the cooperation achievements are evident, effectively promoting the economic development of both sides. Chinese enterprises' investment and acquisition in Europe are normal market behaviors.
"China has always opposed any form of trade and investment protectionism. We hope that the EU side will objectively treat the commercial behavior of enterprises, and create a favorable environment for Chinese enterprises to carry out investment activities locally, promoting the healthy development of Sino-European trade and investment cooperation," the spokesperson said.
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