China’s manufacturers turn to Europe for innovation

CHINESE manufacturers are set to snap up a series of firms in Europe as they try to fast-track innovation and development, according to research published today.

Large and medium-sized industrial firms in the emerging market economy are mulling more mergers and acquisitions, according to business advisory firm Deloitte. More than half of the senior executives questioned in the China Manufacturing Competitiveness study said innovation is the biggest challenge they faced.

Ross James, manufacturing M&A partner at Deloitte, said: “While a competitive advantage on costs has helped the development of Chinese manufacturing companies, they are also facing numerous challenges and pressures that should not be overlooked… We are likely to see more outbound M&A activity from China, allowing enterprises to expand and leap-frog development.”

Last year a record 13 Chinese manufacturers bought into Europe in deals worth more than £6bn, according to figures from Deloitte.