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Chinese investments in the EU


  • Haico EBBERS

    (Nyenrode Business University the Netherlands)

  • Jianhong ZHANG

    () (Nyenrode Business University the Netherlands)


China’s investments in the European Union are much lower than what you may expect given the economic size of both entities. These relatively low investments in Europe are a combination of priority and obstacles. The priority for investments is clearly in Asia, Africa and Latin America. This regional pattern is heavily influenced by the need to solve the resource shortage in the medium and long term. The investments in Europe and the United States are mostly market seeking investments. Research specifically focused on Chinese M&A abroad comes to the same conclusion. The success rate of Chinese M&A abroad is much lower than what we see with respect to American or European investments abroad. In this paper, we examine why Chinese firms are facing more difficulties in the European Union than in other regions. The paper focuses on Chinese M&A as proxy for total foreign direct investments abroad. By looking at the factors that have been documented as influencing the level of M&A abroad, it becomes clear that Chinese firms in Europe are hindered by many factors. For example, the trade between China and the EU is relatively low, the institutional quality is lower compared to the United States, there is less experience with respect to Europe and relatively many deals relate to State Owned Enterprises (SOE) which makes the deal sensitive. So it is logical that Chinese investments are not very high in Europe. However, the research makes clear that the obstacles for Chinese investments in Europe are disappearing step by step. In that sense, we expect a strong increase of Chinese investments in Europe in the future.

Suggested Citation

  • Haico EBBERS & Jianhong ZHANG, 2010. "Chinese investments in the EU," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 187-206, December.
  • Handle: RePEc:jes:journl:y:2010:v:1:p:187-206

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    References listed on IDEAS

    1. Dr Tatiana Fic & Ana Rincon-Aznar & Lucy Stokes & Dawn Holland, 2011. "Labour mobility within the EU," National Institute of Economic and Social Research (NIESR) Discussion Papers 379, National Institute of Economic and Social Research.
    2. repec:nsr:niesrd:379 is not listed on IDEAS
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    6. Alexei P Kireyev, 2006. "The Macroeconomics of Remittances; The Case of Tajikistan," IMF Working Papers 06/2, International Monetary Fund.
    7. Alexandre Abreu, 2012. "The New Economics of Labor Migration: Beware of Neoclassicals Bearing Gifts," Forum for Social Economics, Taylor & Francis Journals, vol. 41(1), pages 46-67, April.
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    Cited by:

    1. Pareja-Alcaraz, Pablo, 2017. "Chinese investments in Southern Europe's energy sectors: Similarities and divergences in China's strategies in Greece, Italy, Portugal and Spain," Energy Policy, Elsevier, vol. 101(C), pages 700-710.
    2. Éltető, Andrea & Sass, Magdolna & Kalotay, Kálmán & Weiner, Csaba, 2015. "Orosz befektetések a visegrádi országokban. Az elméletek temetője?
      [Russian investment in the Visegrád countries - a cemetery for extant theories?]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 565-586.
    3. Kalman Kalotay & Andrea Elteto & Magdolna Sass & Csaba Weiner, 2014. "Russian capital in the Visegrád countries," IWE Working Papers 210, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
    4. Huijun Liu & Shuzhuo Li & Marc Feldman, 2013. "Gender in Marriage and Life Satisfaction Under Gender Imbalance in China: The Role of Intergenerational Support and SES," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 915-933, December.

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    FDI; mergers & aquisitions; China; EU;


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