Chinese foreign investment in European Union: economic and political effects (2000 to 2015)

Abstract

In 2008 the capitalist world suffered from an economic crisis. One of the international actors that most suffered was the European Union (EU), with economic effects such as unemployment and negative Gross Domestic Product (GDP) in many European Union member states. Among the possibilities for the EU to solve the crisis was China’s proposal of foreign investment, portfolio investment and Foreign Direct Investment. Both can produce positive and negative effects for both actors, but they could be the solution that Europe has been waiting for to overcome the economic crisis. To make the analysis, it must be understood the magnitude of Chinese investment in Europe, which is considered important in times of crisis, but it’s still very low amount, especially when compared to the amount of European capital invested in China. So this Chinese investment can’t be considered as a factor of change for the European policies. This investment can be seen as a Chinese business strategy to acquire new technologies and well-known brands in the international market. This acquisition could also bring the possibility for these acquired Companies from Europe enter in the Chinese internal market and others in the world.