China's offensive in Europe Go back »

2017-03-07 | Shanghai

On March 7^th the European Union Chamber of Commerce Shanghai welcomed the authors Philippe Le Corre and Alain Sepulchre, who presented their book China’s offensive in Europe and explained their analysis on China’s rapidly expanding investment activities in European countries in recent years.

China’s outward FDI were increasing enormously in the years from 2004 to 2016 and especially in the last four years. Despite the complexities of investing regarding tax laws, bureaucracies and cultural diversity, Europe became an attractive place for Chinese investors, mainly state-owned enterprises. Real estate and financial services are the common sectors plus strategic investments in infrastructure. Cases such as the Piraeus Harbor in Greece and the partly acquisition of a leading energy company in Portugal show that China is building a powerbase in Europe. With the “One Belt, One Road Initiative” China wants to strengthen the China-Europe relation even further.

Germany is mentioning concerns about FDIs in tech and the automotive industry and recently blocked a merger of chip maker Aixtron. On the other hand, western firms face obstacles entering the Chinese market. The lack of reciprocity might harm the trade relation between both parts.

Both authors are sure that China will increase acquisitions expanding the market power and will have a huge impact on the economic development in Europe.

For more information please contact

Related EURObiz articles