Despite multiple complexities and uncertainties facing the global market amid rising geopolitical tensions, trade ties between China and Europe are being further strengthened, pointing to more room for growth for multinational banks, Ignacio Gutierrez-Orrantia, CEO of Citibank Europe Plc, said in an interview during his weeklong visit to China in March.
Bringing together the bank’s regional heads from all over the world, the visit was a first-of-its-kind move that underscored the country’s pivotal role in the bank’s global strategy.
The European market will continue to be an important investment destination for Chinese companies due to the big emphasis on green transition in both markets, Gutierrez-Orrantia said.
Deeper cooperation in renewable energy can be anticipated, as China leads in manufacturing scale and costs, while Europe excels in innovation, grid efficiency and mobility. A better partnership can be forged in electric vehicles as well as batteries, where China’s market leadership meets Europe’s regulatory push to phase out fossil fuel vehicles. In addition, companies in both markets can ink more collaboration deals for the decarbonization of heavy industries.
“When you bring the best of both sides together, one plus one equals three,” he said.
Consumer products have emerged as the most dynamic sector for Chinese investment in Europe, overtaking telecommunication, media and technology. Chinese companies are increasingly looking to invest in established European brands, not only for their market presence but also as platforms to access new channels and customer segments globally, according to Gutierrez-Orrantia.
Recent data provide a clue to the upward trend.
According to Citi’s calculations, Chinese foreign direct investment into Europe reached 10 billion euros ($11.6 billion) in 2024, a 47 percent increase year-on-year. Greenfield investments hit a record high of 5.9 billion euros, marking the third consecutive year of growth.
Meanwhile, China’s outbound direct investment totaled $175 billion in 2025, up 7 percent year-on-year. Chinese companies completed $44 billion in global M&As — a 40 percent annual increase — with Asia and Europe each accounting for 30 percent of that total.
Citi’s business has been growing alongside this tide.
The bank’s European revenue linked to Chinese clients grew 35 percent over the past four to five years. In Asia, investment banking revenue rose nearly 30 percent year-on-year. Citi raised over $250 billion in international capital markets for Asian clients, including $40 billion for Chinese companies in 2025.
With a history in China spanning over 120 years, Citi now serves 70 percent of Fortune 500 companies operating in the country. But the bank’s aims go beyond that, as its commercial banking unit is actively helping fast-growing, small-sized Chinese firms expand globally. In this way, the bank can serve as “a partner for the journey” rather than as a transactional player, Gutierrez-Orrantia said.
As more Chinese companies set up operations in the rest of the world, they have helped to speed up the pace of innovation and stimulate competition in a good way. Companies are adapting accordingly, which benefits commerce in general, he said.
Despite geopolitical uncertainties, trade continues while being reshaped through different corridors. Companies are reevaluating their businesses and considering where to allocate their assets, according to Gutierrez-Orrantia.
“Companies are focused on security and resilience, reconfiguring supply chains. After years of volatility, risk management is deeply embedded in corporate DNA,” he said.
The resilience of corporate activity is evident in early 2026 data.
Global M&A volume reached $929 billion in the first three months, up 29 percent from the same period last year. Mega deals accounted for 36 percent of total value compared to 23 percent previously, showing that corporate boards are willing to make long-term strategic bets, Gutierrez-Orrantia said.
Reflecting on China’s role in this evolving landscape, Marc Luet, head of Japan, Asia North and Australia, and banking at Citibank, said that the country’s policy consistency, industrial chain resilience, and manufacturing expertise hold unique value. New partnerships will be reached, not only with China but also across Asia and Europe, Luet said.
“China is not only a significant business in itself, but it’s also about the connectivity of Chinese clients with the rest of the world. The largest growth area for us is the globalization of Chinese champions,” he said.
shijing@chinadaily.com.cn