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China’s global outbound foreign direct investment (OFDI) soared to record levels in 2016. The European Union continues to be a favorite destination for Chinese investors, with Germany as the largest recipient. Meanwhile, the value of EU FDI transactions in China in 2016 continued to decline for the fourth consecutive year. The Chinese acquisitions of high-tech assets, particularly in manufacturing and machinery, have fueled a European debate about the involvement of the Chinese state in such deals and the long-term risks of losing core industrial technology to China.