Advisors and consultants who want to help their European clients access Chinese capital need to work hard on narratives that emphasise industrial use cases while downplaying any national security concerns.

The continent badly needs investment to rebuild its manufacturing base. At the same time, Chinese investors are thinking about deploying capital overseas to sidestep an acceleration of protectionist trends throughout the world when President-elect Donald Trump enters the White House next month.

There are two main hurdles to clear to make these cross-border transactions happen. Dealmakers need to show that bringing Chinese capital into European manufacturing is safe from a national-security perspective; while downplaying the risks of state subsidies in the Asian giant distorting home-grown markets.

John West, Mergermarket’s managing editor for Europe, the Middle East and Africa (EMEA), and Luuk de Klein, head of analytics (EMEA), join Dealcast host Julie-Anna Needham to discuss why the art of the defensive deal is likely to be a big theme of Trump’s second term throughout the world.

• What are the implications for global markets of a likely block on Nippon Steel’s [TYO:5402] USD 15bn takeover of US Steel [NYSE:X]?
• Has Europe’s automotive industry been able to access Chinese capital as it struggles with the transition to electric vehicles (EVs)?
• Why is the fine print of any incoming tariffs so important for any dealmakers considering defensive transactions in the US?

All this and more in this week’s Dealcast