Mining dominated announced Chinese outbound investment in Q2 2026, driven by new acquisitions and the expansion of previously acquired operations. Automotive investment is gradually recovering, led by vehicle parts manufacturing and carmakers weighing new EV assembly plants. M&A activity, by contrast, slowed for the first time in five quarters, ending a growth streak that began in Q1 2025.
New data from Rhodium Group’s China Cross-Border Monitor (CBM) shows that mainland Chinese companies announced 145 major FDI transactions in Q2 2026 with an estimated total value of $25.5 billion.
Greenfield investment reached $20.5 billion, which is slightly below the 2025 quarterly average of $28 billion. The largest transaction was CMOC’s $1.7 billion expansion of the Los Cangrejos gold-copper mine in El Oro, Ecuador, following its initial acquisition for $421 million in mid-2025.
New M&A transactions totaled $5.0 billion, which represents a 54% drop from the previous quarter, ending five consecutive quarters of growth. The only transaction over $1 billion was Yancoal’s $2.4 billion acquisition of an 80% stake in the Kestrel coal mine in Queensland, Australia. If completed, it would be the largest Chinese acquisition in Australia since 2017.
The second quarter saw several notable transaction status updates. Following India’s relaxation of restrictions on Chinese investment in March, New Delhi is set to approve Geely’s hybrid engine manufacturing site estimated at $167 million. German authorities have cleared JD.com’s $2.5 billion acquisition of electronics retailer Ceconomy, with approval from the EU Commission still pending. Zhongke Electric’s $1.1 billion battery anode project in Oman and XTC New Energy’s estimated $110 million battery cathode project in France both broke ground. In Southeast Asia, Sinomachstarted building its $1 billion hydropower station in Cambodia, and Livzon finished acquiring a 68% stake in Vietnamese Imexpharm Corporation for $263 million. CNMC’s acquisition of the Raura polymetallic mine in Peru for $106 million has been settled. Finally, West China Cement completed the acquisition of South African AfriSam for $145 million. The company also commissioned a $250 million cement production line in Uganda.
Multiple troubled Chinese investments were reported in the second quarter. Chinese FDI in US clean tech suffered a flurry of divestment: Boviet Solar, JinkoSolar, and AESC partly or fully sold their plants in North Carolina, Florida, and Tennessee, respectively, and Ebon Solar abandoned its planned $942 million solar cell project in New Mexico. Sanan Optoelectronics’ acquisition of 75% of Dutch Lumileds Holding for $210 million was blocked by the US on national security grounds. BYD suspended its $1 billion EV factory in Turkey and Semcorp’s $497 million EV battery material factory in Hungary was forced to halt operations due to safety and environment pollution concerns. China Investment Corporation is actively considering divesting its 10% stake in Heathrow airport that it acquired for $726 million in 2012. Linglong terminated its tire manufacturing plant in Brazil estimated at $833 million after two years of negotiation. Zijin is facing delays to its $4 billion takeover of Allied Gold with assets in Mali, Ivory Coast, and Ethiopia due to concerns from Chinese regulators over the price and geopolitical risks.
The top sectors for Chinese outbound investment in Q2 2026 were basic materials, automotive, and energy (Figure 2).
Driven primarily by mining transactions, the basic materials, metals, and minerals sector attracted $10.9 billion in investment, the third highest quarter in the past five years. The largest transaction was Yancoal's $2.4 billion acquisition of the Kestrel coal mine in Australia, followed by CMOC’s $1.7 billion commitment to develop the Cangrejos gold-copper project in Ecuador. In Peru, Zijin announced a $1.5 billion expansion of the La Arena copper mine it acquired in late 2024.
The automotive sector ranked second with $5.9 billion, rebounding after three consecutive quarters of decline. While tire manufacturing led the sector, seven new EV plants were also announced, the highest number per quarter since Q2 2025. Sailun is building a second tire manufacturing plant in the TEDA Industrial Zone in Egypt for $1.1 billion. Linglong Tire is investing $645 million for the second phase expansion of its tire factory in Zrenjanin, Serbia. China National Tire & Rubber will spend $550 million to modernize its existing Egyptian tire factory and build a new plant alongside it.
With $2.2 billion, the energy sector ranked third, continuing its decline from the 2024 rebound. Under a 35-year concession, China Energy Engineering Corporation is investing $750 million in a gas turbine power station in the Ivory Coast. SANY moved forward with its $300 million wind turbine factory in Egypt after initial talks earlier this year. In Kazakhstan, China Energy International Group announced an estimated $287 million wind-storage plant.
Asia was the top destination for Chinese capital in Q2 2026, followed by Latin America and MENA (Figure 3).
Asia remained the leading destination for Chinese investment in Q2, attracting $6.3 billion in investment. Haier announced its third home appliance manufacturing plant in India for $870 million. If it goes through, it would be the largest Chinese greenfield transaction in the country since New Delhi imposed restriction on investment from China in 2020. At Indonesia’s Java Integrated Industrial and Ports Estate, Geabh Joint Technology announced plans to invest $600 million in a chemical production facility. Nearby, BYD Electronics pledged to expand its consumer electronics manufacturing site in Phu Tho, Vietnam for $480 million.
With $5.0 billion in investment, Latin America ranked second for the first time in three years owing to multiple mining transactions. CMOC committed $1.7 billion in the Cangrejos gold-copper project in Ecuador, and in Peru, Zijin is spending $1.5 billion to extend the La Arena copper mine. In Argentina, Ganfeng Lithium is doubling capacity at the Cauchari-Olaroz lithium brine operation for an estimated $579 million.
MENA came third, attracting $4.0 billion in investment, recovering from two quarters of continuous decline but remaining below the two-year average. Two Egyptian tire plants led the quarter: Sailun's $1.1 billion facility and China National Tire & Rubber’s $550 million plant. Additionally, an unidentified Chinese investor has begun construction on a $500 million anode plant at Oman’s Duqm Special Economic Zone, the second battery materials factory in the country.