Why Chinese companies are investing heavily in Europe

Why Chinese companies are investing heavily in Europe.jpgsignatureed8c62095645e6b163bb274513a4bdc2

In recent years, Chinese companies have been significantly increasing their investments in the European Union. From Bordeaux vineyards to automotive manufacturers in Germany and construction machinery manufacturers in Italy, these companies have been on an unprecedented purchase spree of rations.

In the EU, rapid growth has feared the impact of these investments on Europe's long - term jobs, technology, and business potential, raising demands for greater control. In this context, some see the investment screening equipment that the EU introduced in 2019 as targeted at Chinese companies.

During the pandemic, growing concerns that vital European technology and knowledge could be vulnerable to foreign takeover due to the economic downturn gave the European Commission guidance issued to its member states. To further clarify the situation, the EU has negotiated a treaty with China - the Comprehensive Investment Agreement - to replace the current 26 individual country agreements between - all individual member states except Ireland.

The agreement is currently blocked for political reasons, following tattoo sanctions related to EU concerns over human rights violations in the Xinjiang region. But the debate on how best to adapt to this new context is unlikely.

Much of what we know about Chinese investment in the EU is big news. In a recent paper, my colleagues and I analyzed these investments using detailed Chinese data. Our work highlights the great diversity of Chinese investments in the EU, in terms of the types of businesses and companies involved and the incentives of different companies to invest.


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