Chinese companies have shifted the focus of their overseas acquisitions, away from natural resources toward innovative technology and robotics, according to a report from a London-based law firm.

The annual M&A Trends by Clifford Chance found German industrials were a major target in 2016.

The report noted Chinese private and State-owned enterprises were increasingly targeting technology in an attempt to gather commercial and technical knowhow with a view to using it in Chinese operations.

Neeraj Budhwani, a Clifford Chance M&A partner based in Hong Kong, told China Daily: "China’s appetite for offshore assets remains voracious, but we’re seeing a shift of focus … Technology companies are actively seeking out opportunities in the fin tech sector, with a view to bringing more innovative technology back to the country to further develop and enhance their own domestic prospects, and by extension, those of the Chinese economy."

The report also notes that the move toward high-end technology is in line with Beijing's 13th Five-Year Plan (2016-20) and its Made in China 2025 policy. The study said the strategy is to develop China into a more advanced industrial society that places great emphasis on innovation, intelligent manufacturing and entrepreneurship.

But the report warned of growing concerns in Germany that Chinese acquisitions will affect Germany's industrial sector and about the security of industrial and corporate data in the hands of Chinese-owned companies.

Meanwhile, the report found Chinese outbound mergers and acquisitions rose 114 percent globally in 2016 in comparison to the previous year.

Chinese bidders spent $208.6 billion last year, driven by industrial, chemical and technological deals in Europe and North America. The report noted Chinese investment into Europe was up 201 percent, and in North America, it rose by 412 percent.

The momentum came from a range of factors, including an abundance of capital and cheap debt, the pursuit of growth outside a slowing economy, and efforts to meet the demands of a more affluent middle class.

Clifford Chance also highlighted the possible impact on Chinese outbound M&A of newly-announced regulations on capital outflows.

Terence Foo, an M&A partner based in Beijing, said: "Despite the introduction of restrictions on capital outflows in China, we are helping Chinese buyers explore more innovative funding structures. We remain cautiously optimistic about the longer term ability of China to sustain a strong level of outbound M&A activity."