Indiary

Follow us
Back to Flash&Facts

It's Time some European Countries get a Wake-up Call

By BMW Werk Leipzig (http://bmw-werk-leipzig.de) [CC BY-SA 2.0 de (http://creativecommons.org/licenses/by-sa/2.0/de/deed.en)], via Wikimedia Commons

Some of the larger European countries, namely Germany, France and Italy finally decided to take action with regard to the Chinese massive investments in their economies. Last year Chinese overseas investments -worldwide- reached $ 170 billion. During this very year 2016 those investments in Europe increased by 77%! (Fig.Inst.Merics). In response, the governments of the countries mentioned above which represent the 3 largest economies in the Eurozone wish to put in place a right of veto, especially over Chinese high-tech takeovers. Last year, German authorities have been seriously shaken when a Chinese holding took control of Kuka a world renowned robot maker. We should point out that Chinese investments in Germany have risen from $ 530 million in 2015 to $ 12.6 billion last year !(Report EY). In France, the year 2015 was also marked by the very mediatized acquisitions of the Club Med and Louvre Hotels. In Italy, Chinese investments in sport, especially in Football clubs (Berlusconi's AC Milan) were widely reported in the medias. What is unacceptable for European governments is that such investments, mostly those aimed at the acquisition of specific know-hows and new technologies, are carried out by state owned or state driven companies. But above all, European leaders highlight that there is no genuine reciprocity when it comes to opening up Chinese markets. Yet, Chinese investments appear to be in decline since the beginning of 2017. But obviously, this is not the result of pressure by the European states. In fact this trend only reflects the Chinese government's determination to curb the huge capital outflows. Finally, it becomes urgent that China adopts a transparent and constructive foreign investment policy.

Post a comment

Please check that the information in the fields here below is correct.

Your comment is awaiting approval and will soon appear below!

Comments :

  • No comments

Newsletters

Stay Informed about the Latest News

Created by BlueLeaf.ch