China's State Administration of Foreign Exchange (SAFE) has acquired stakes in a number of critical infrastructure and property assets in European countries through a network of offshore companies. This is the conclusion reached by the authors of an investigation who examined corporate and registration documents.
WHAT THE INVESTIGATORS FOUND
According to OCCRP, SAFE, which is under the authority of China's central bank and manages the country's foreign exchange reserves, used a network of companies to acquire stakes in assets across eight European countries.
Journalists discovered 28 companies registered in Luxembourg, linked by shared directors and addresses. According to the investigators, these entities belong to, or previously belonged to, 7 companies from the British Virgin Islands, where information about ultimate beneficial owners is not publicly disclosed. After analysing corporate reports and registration documents, the authors of the investigation concluded that the offshore structures were acting in the interests of SAFE or were under its control.
WHAT ASSETS ARE FEATURED IN THE INVESTIGATION
As reported by OCCRP, over the past 14 years, stakes in dozens of assets have been acquired through this corporate structure.
In Spain, SAFE indirectly obtained a 33.75% stake in a company which, through another entity, owns the gas operator Madrileña Red de Gas, serving hundreds of thousands of homes and businesses in the Madrid region.
In the United Kingdom, the agency owns 49% of three onshore wind farms located in Wales and Scotland. In France, SAFE controls approximately 1% of the company Vauban Infra Fibre, which develops fibre-optic networks and works with major urban data centres.
Furthermore, the investigation indicates that the agency indirectly owns 10.63% of a company that operates the ferry service between the Isle of Wight and mainland Great Britain. The British property portfolio also includes shopping centres in Bristol and Leicester, as well as student accommodation.
WHAT OTHER PROPERTIES ARE MENTIONED
According to the investigation, in Belgium, entities linked to SAFE own a stake in a company that owns a building used by institutions of the European Union (EU), including the European Commission. Another company owns the headquarters building of the Belgian federal police.
The European Commission stated that strict security requirements apply to all the buildings it uses.
In Poland, the investigation's authors claim that SAFE indirectly controls 9 companies listed as owners or long-term users of land plots in 71 registration records. These sites contain logistics centres used by, among others, Amazon and DPD.
In Amsterdam, the Chinese agency indirectly owns 50% of a company that holds a stake in the Grand Hotel Krasnapolsky and several residential buildings.
WHAT THE EXPERTS SAY AND WHY THE INVESTIGATION MATTERS
Experts interviewed by the publication noted that an opaque ownership structure can create risks, particularly when it involves energy, telecommunications, and other strategic sectors.
At the same time, the investigation's authors emphasise that the use of offshore and multi-layered corporate structures is not in itself a violation of the law. In most of the identified cases, SAFE holds a minority stake, which does not give the agency the ability to directly manage the relevant assets.
WHY IT HAS BECOME HARDER TO IDENTIFY OWNERS
In 2022, the EU Court of Justice overturned the requirement for free public access to registers of ultimate beneficial owners of companies, citing the owners' right to privacy. Following this, as the authors of the piece note, it has become significantly more difficult for journalists and the public to establish the actual owners of European companies and real estate assets.
