BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

China’s Foreign Direct Investments and Their Influence on the EU Countries
Sukhonos Y. S.

Sukhonos, Yurii S. (2019) “China’s Foreign Direct Investments and Their Influence on the EU Countries.” Business Inform 12:51–56.
https://doi.org/10.32983/2222-4459-2019-12-51-56

Section: International Economic Relations

Article is written in Ukrainian
Downloads/views: 3

Download article (pdf) -

UDC 339.727.24

Abstract:
Although the EU is generally interested in foreign investment, foreign direct investment (FDI) from China is often of some concern. Despite this, the EU at the present stage of development faces the challenge of reforming its foreign direct investment policy in such a way as to simultaneously achieve the following goals: to protect the EU’s current openness as to FDI (including the China’s); to solve the security problems that arise for some types of FDI; to ensure better openness and a level playing field for European FDI in China. The article is aimed at studying the threats and opportunities that arise from China’s direct foreign investment in the EU and their impact on the entire geographical region. The article analyzes the processes taking place in the mutual relations between the EU and China in the context of foreign direct investment implemented by the chinese part. It is proved that China, by investing in the EU countries, seeks access to: the latest technologies, the European market, the third-country markets (through the European market), the European brands, as well as influence on the political and economic processes at the level of the European region in general. The regional distribution of China’s foreign direct investment to the EU countries is considered. It is determined that the most interesting for chinese investors are the economically powerful countries - Great Britain, France and Germany. As for the regional distribution of direct investment, it is at present relatively uniform. The current tendencies in the change of the EU’s strategic priorities in terms of investment strategy are defined. The threats posed by China’s direct investment in the EU economies are being examined. In this process mainly allocated are the economic and political threats. From an economic point of view, FDI from China can affect the status of competition and generally lead to a redistribution of value, and from a political point of view, to contribute to the spread of China’s influence at the geopolitical level. A list of measures that can be implemented to reduce China’s economic and political influence on the European countries as recipients of direct investment is considered.

Keywords: foreign direct investment, multinational companies, mergers, acquisitions, globalization, China, EU.

Fig.: 1. Tabl.: 1. Bibl.: 12.

Sukhonos Yurii S. – Student, Institute of International Relations, Taras Shevchenko National University of Kyiv (60 Volodymyrska Str., Kyiv, 01033, Ukraine)
Email: [email protected]

List of references in article

Alon, I. et al. “A Review of the Internationalization of Chinese Enterprises“. Asia Pacific Journal of Management, vol. 35 (2018): 573-605.
Erfan, Ye. A., and Posypanko, O. A. “Kytai yak tsentr tiazhinnia priamykh inozemnykh investytsii“ [China as the Target Country for FDI Inflows]. Ekonomika i suspilstvo. 2017. http://www.economyandsociety.in.ua/journal/12_ukr/6.pdf
Ivashchuk, I. O., and Ornat, M. R. “Investytsiini priorytety ekonomichnykh reform Kytaiu v umovakh hlobalnoi nestabilnosti“ [Investment Priorities of Economic Reforms of China under Global Instability]. Ekonomichnyi analiz, vol. 21, no. 2 (2015): 309-316.
Ukrainets, L. A. “Initsiatyva «Poias i Shliakh» yak osnova naroshchuvannia ekonomichnoi ekspansii Kytaiu“ [The Belt and Path Initiative as a Basis for Economic Expansion of China]. Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu. Seriia «Mizhnarodni ekonomichni vidnosyny ta svitove hospodarstvo», vol. 3, no. 24 (2019): 109-113.
Yenchzhao, Liui, Pekna, T. V., and Vei, Sun. “Priami investytsii kytaiskykh pidpryiemstv v Ukrainu“ [Direct Investments of Chinese Enterprises into Ukraine]. Aktualni problemy ekonomiky, no. 8 (2012): 413-418.
Bickenbach, F., and Liu, W.-H. “Chinese Direct Investment in Europe - Challenges for EU FDI Policy“. CESifo Forum. Munchen. 2018. https://www.econstor.eu/bitstream/10419/199017/1/CESifo-Forum-2018-4-p15-22.pdf
“China. Directorate-General for Trade“. European Commission. 2019. https://webgate.ec.europa.eu/isdb_results/factsheets/country/overview_china_en.pdf
“Chinese Investment in Europe. A Country-Level Approach“. ETNC. 2017. http://www.realinstitutoelcano.org/wps/wcm/connect/e982d7b7-9720-43b9-a627-2b0e558bd0c4/Chinese-investment-Europe-Report-ETNC.pdf?MOD=AJPERES&CACHEID=e982d7b7-9720-43b9-a627-2b0e558bd0c4
Hanemann, Th., Huotari, M., and Kratz, A. “Chinese FDI in Europe: 2018 trends and impact of new screening policies“. A report by Rhodium Group (RHG) and the Mercator Institute for China Studies (MERICS). 2019. https://www.merics.org/sites/default/files/2019-03/190311_MERICS-Rhodium%20Group_COFDI-Update_2019.pdf
Luo, Y., Xue, Q., and Han, B. “How Emerging Market Governments Promote Outward FDI: Experience from China“. Journal of World Business, no. 45 (2010): 68-79.
Knoerich, J. “Has Outward Foreign Direct Investment Contributed to the Development of the Chinese Economy?“ Transnational Corporations, no. 23 (2016): 1-48.
Knoerich, J., and Miedtank, T. “The Idiosyncratic Nature of Chinese Foreign Direct Investment in Europe“. CESifo Forum. Munchen. 2018. https://www.ifo.de/DocDL/CESifo-Forum-2018-4-december.pdf

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster