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An Endless Shopping Season

HNA, Midea, Jiu Jiang or ChemChina are part of the huge Chinese groups which show an insatiable appetite for investment in advanced capitalist economies of Europe. According to a report by Baker & McKenzie Chinese state-owned and private businesses invested US$ 23 billion in Europe in 2015. These new investments in Europe, including the EU, Switzerland and Norway, were up 28% on the US$ 18 billion in 2014. And the strong start to 2016, nearly US$ 50 billion of pending deals in Europe confirms the trend of recent years. In 2015 the top 5 EU countries by investment value were Italy (US$ 7.8 Bn), France (US$ 3.6 Bn), the UK (US$ 3.3 Bn), the Netherlands (US$ 2.5 Bn), and Germany (US$ 1.3 Bn). Outside the EU, it is worth noting that Chinese investments in Switzerland have also been significant (US$ 1.27 Bn). And these investments in Europe are increasingly diversified, from real estate to automotive industry and retail sector. In this respect, one could mention the following examples: Pirelli and Cifa (Italy), Peugeot and Accord Hotels (France), Barclays and BP (UK), Sygenta and Swissmetal (Switzerland). Europe has undoubtedly become a very attractive hunting ground for Chinese companies. However, and in contrast with this strong trend, European companies don't seem to share this enthusiasm. In fact, and according to the most recent report from the European Chamber of Commerce in China less than one in two companies (47%) would be willing to expand its activities in the Middle Kingdom. And the major reason to explain this lack of audacity is a deteriorating economic but also regulatory and fiscal environment for foreign companies. This grave imbalance in market access should no longer be accepted.

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