The multinational enterprises (MNEs) and European economic integration are the two research topics in international economic arena. This paper analyzes the direct investment activities by Asian MNEs in European Union, especially by Japanese MNEs. The paper explores the inventive situation of Asian MNEs in Europe by applying descriptive statistics and by reviewing historical literature. Then, this paper further investigates the evolution, the motivation, and the regional and sectoral distribution of Japanese direct investment in European Union.