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Europe is becoming more attractive than the United States for Chinese companies looking for investments, reports the China Daily.

Citing figures from China's Ministry of Commerce, the daily notes that 5.8% of Chinese overseas direct investment in 2007 was directed at Europe, behind Asia on 62.6%, Latin America 18.5% and Africa 5.9%, but ahead of North America on 4.3%.

There were 252 investments by Chinese companies in Europe in the 10 years up to 2007, says the Daily, citing Ernst & Young. The largest number of these investments, 101, went to the United Kingdom with 40 going to Germany, 24 to France and 15 to Sweden.

"It is not always about acquisition. You see a number of Chinese companies setting up research and development facilities in Germany because they want to be in industrial clusters where they have access to highly skilled labor, research institutes and training facilities," Eric Thun, lecturer in Chinese business studies at the Said Business School at Oxford University, told the Daily.

Some of the recent deals include Zhejiang Geely Holding Group Co.'s takeover of Swedish carmaker Volvo Car Corporation in August, and Fosun International Ltd's acquisition of a 7.1% stake in French holiday resort operator Club Mditerrane in June.

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