After coronavirus outbreak, Chinese companies eye European businesses

WION Web Team New Delhi, Delhi, India Apr 08, 2020, 09.35 PM(IST)

coronavirus Photograph:( AFP )

Story highlights

China is ready to spend and their latest hunting ground is Europe, countries like Spain and Italy, two of the worst affected countries in the world

China which caused the coronavirus crisis seems to be finding new opportunities with Chinese companies scouting for "distressed assets" in Europe.

Also read: UK reports highest one-day deaths as COVID-19 toll surges past 7,000

Distressed companies are those that need money to survive. China is ready to spend and its latest hunting ground is in Europe, countries like Spain and Italy - two of the worst affected countries in the world.

First, China exported the virus now, it seeks to profit from it. Chinese companies are already selling coronavirus supplies like masks, ventilators and more.

Also read: At least 51 recovered coronavirus patients test positive again in South Korea

Now, China aims to take over Europe's businesses. The plan is to buy foreign companies at throwaway prices. Reports suggest global bankers are getting multiple requests.

Chinese companies are making queries. They are looking for investment opportunities -- particularly in Europe. It includes China's state-owned enterprises who have been making early headway.

First in Australia and now Europe. There is a threat of hostile takeovers the European governments are concerned about, their economies are vulnerable, businesses want bailouts.

The companies are easy prey for China with European governments upping their defences. They want to protect companies in key sectors.

They are so concerned that in the middle of the deadly pandemic, they are amending laws. European governments are now coming up with new foreign investment rules.

In Italy, on Monday, the government announced curbs on foreign takeovers. The decision covers sectors like banks, insurance, energy and healthcare.

Spain too has some new rules, if a foreign firm wants to invest more than 10 per cent in a Spanish company, they must get the government's approval.

Germany too has passed a similar law.