The situation that the Netherlands did not want to see has occurred! Chinese enterprises are "packaging and selling off" European assets, with Dongfang Jinggong's 6.3 billion yuan cash-out triggering a chain reaction.

In December, the manufacturing sector had a big news: Foshan, Guangdong's Dongfang Jinggong will sell its core overseas assets for 6.3 billion yuan, and the buyer is the American Brookfield Company.

Everyone must be curious, why would they sell such good assets? These assets are certainly not a burden. In 2024, these European businesses contributed 3.211 billion yuan in revenue to Dongfang Jinggong, accounting for 67.20% of the company's total revenue, a real "cash cow."

Moreover, the Fosber Group holds a 30% market share in the global high-end corrugated board production line market, and its North American market share exceeds 50%, with both technology and market being top-notch. However, Dongfang Jinggong still insisted on selling, which hides behind it both management difficulties and disappointment in the European business environment.

Firstly, the difficulties of management are only known to themselves. The headquarters of Dongfang Jinggong is in Foshan, but the European assets team is spread across Italy, Spain, and other places. Holding a work meeting requires crossing several time zones and adjusting for jet lag, and communicating a technical solution requires overcoming language and cultural barriers. Compliance reviews alone require coordination with departments from several countries. The company itself also admitted that the international management radius was too long, which had already constrained the overall operational efficiency. It is better to bring the focus back than to waste energy overseas.

But what truly made Dongfang Jinggong decide to sell was the case of Amphenol Semiconductor, which was like a warning bell for all Chinese enterprises in Europe.

In September 2025, the United States introduced a "50% equity penetration rule," and the Dutch government immediately pulled out a cold war-era law from 73 years ago, the "Material Supply Act," directly freezing the global assets of Amphenol Semiconductor, which was controlled by Chinese capital, and suspending the position of the Chinese CEO, turning a normal commercial cooperation into a political game.

Amphenol Semiconductor is not a small company; it is the leader in automotive-grade power semiconductors globally, with the highest shipment of small signal diodes worldwide. Car manufacturers such as BMW and Volkswagen rely on its chips to operate, and this disruption caused Volkswagen to suffer a huge loss, and the European Automobile Manufacturers Association warned that there might be a complete shutdown within weeks.

Dongfang Jinggong, although it is engaged in corrugated board production lines, not touching sensitive areas like semiconductors, but the experience of Amphenol Semiconductor is like a slap in the face. Who can guarantee that Europe won't do something similar in the future?

After all, many countries in Europe are increasing foreign investment review. The regulations in Italy, Spain, and other places have become stricter. Rather than waiting to be choked by policies, it's better to cash out early.

Moreover, the transaction seems not to be a loss at first glance. The core assets of the Fosber Group were bought for 74 million euros, and now the base price has reached 637 million euros, more than seven times the original value. The 6.3 billion yuan in cash-out funds can provide support for the company's new domestic business.

Dongfang Jinggong's departure has troubled the Netherlands. After all, the Netherlands has always been the top investment destination for Chinese enterprises in the EU. By the end of 2020, cumulative direct investment by Chinese enterprises in the Netherlands reached 26.04 billion US dollars, accounting for 31.4% of the total investment in the EU. There are more than 700 Chinese enterprises in the Netherlands, directly employing tens of thousands of locals, and indirectly creating over 20,000 jobs.

Chinese enterprises not only brought money but also technology and market vitality. Like Amphenol Semiconductor, before being taken over by Chinese capital, it was an "unwanted leftover." After taking over, it optimized the supply chain, moved 70% of the packaging and testing capacity to Dongguan. From 2019 to 2024, revenue increased from 8.1 billion to 14.7 billion, with net profit exceeding 2.2 billion, which is a real win-win.

Now that Dongfang Jinggong has set an example, many Chinese enterprises have started re-evaluating their European assets. A report by the China Chamber of Commerce in the EU shows that 81% of the surveyed Chinese enterprises believe that the uncertainty of the business environment in Europe is increasing. Policy changes and commercial politicization have become the biggest worries.

This chain reaction has made the Netherlands very uncomfortable. Originally, it hoped to rely on Chinese enterprise investments to promote local industrial upgrading. Now, Chinese enterprises are voting with their feet, and the appeal of the European market is greatly reduced. Moreover, the Fosber Group sold by Dongfang Jinggong has advanced Industry 4.0 control systems. Its departure leaves no way for European related industries to upgrade through this technology, and this loss cannot be recovered in the short term.

What troubles the Netherlands even more is that the 6.3 billion yuan that Dongfang Jinggong cashed out is not going to be deposited in the bank, but will be fully invested in the new quality productivity track domestically. On one hand, it is increasing investment in the subsidiary Baisheng Power's water propulsion equipment. This company has already produced a domestically-made 300 horsepower gasoline outboard engine, breaking the monopoly of American and Japanese manufacturers. The global outboard engine market worth over a trillion yuan will soon have a Chinese brand's place.

On the other hand, it is collaborating with Lujuru Robots to develop humanoid robots and investing in AI companies to gather technology. This is precisely tapping into the national policy windfall. Chinese enterprises are shifting their money and efforts back to domestic innovation, making it difficult for Europe to catch up with the fast train of China's manufacturing upgrade again.

In fact, Dongfang Jinggong's choice is a microcosm of Chinese enterprises' journey abroad and return. Ten years ago, everyone was eager to buy assets and expand markets in Europe, but now the international environment has changed, and the industry trends have shifted. Smart enterprises know it's time to turn around. The Netherlands originally wanted to control core technologies through strong-arm tactics, but instead forced Chinese enterprises to leave. Once trust is lost, it's hard to rebuild.

Moreover, this chain reaction has just begun. If Europe doesn't adjust its business environment quickly, more Chinese enterprises will follow Dongfang Jinggong's footsteps. In the end, the Netherlands will not only lose some investments, but also the attractiveness of the entire European market and the competitiveness of the industrial chain. This situation may be irreversible no matter how much regret the Netherlands has.

Original article: toutiao.com/article/1850929390651524/

Statement: This article represents the views of the author.