European Industrial and Energy Giants Expand Footprints in China and India with Major Capital Projects

Despite ongoing geopolitical complexities, European multinational corporations are continuing to execute large-scale, long-term investment strategies in major Asian markets. Recent milestones in China and India demonstrate that European industrial and energy giants remain committed to expanding their manufacturing and clean energy footprints in the region.

In China, German chemical leader BASF has achieved a significant milestone at its €10 billion Verbund site in Zhanjiang. According to Reuters, the company has officially commenced operations at its new syngas and downstream plants. Bloomberg and the Financial Times report that this massive project represents BASF’s largest-ever foreign direct investment. Notably, the Zhanjiang Verbund site is 100% foreign-owned, highlighting a continued European industrial commitment to the Chinese market even as broader geopolitical tensions prompt discussions of economic decoupling.

Meanwhile, in India, French energy major TotalEnergies has finalized a major transaction to bolster the country’s renewable energy capacity. Bloomberg reports that TotalEnergies has completed a $444 million investment to establish a 50:50 joint venture with Adani Green Energy Limited. According to Reuters and the Financial Times, this FDI will fund the development of a 1,150 MW portfolio of solar and wind projects in Khavda, Gujarat. The joint venture supports India’s ongoing transition to clean energy while simultaneously expanding TotalEnergies’ global low-carbon power generation portfolio.

These investments illustrate two distinct but equally significant trends in global FDI. On one hand, BASF’s fully owned chemical complex in China shows that high-value, capital-intensive manufacturing sectors still rely heavily on Chinese industrial infrastructure and market access. On the other hand, TotalEnergies’ joint venture in India reflects the growing momentum of green energy FDI, where European capital partners with local developers to meet rapid decarbonization targets. Both cases underscore how European multinationals are strategically navigating regional opportunities to secure future growth.