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China-EU FDI

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The effects of Chinese investment

An EU team detailed the consequences of Chinese business investment in Europe. The study considered effects on the European economy as well as altered work practices in Chinese-owned European businesses.


In recent years, China and the EU have developed many areas of cooperation, including substantial research collaboration. The relationship also involves investment by Chinese companies in EU businesses. The EU-funded CHEUFDI (China-EU FDI) project detailed and assessed Chinese investment activity in the EU. The study highlighted Chinese motivation factors, modalities and areas of concentration, plus preferred countries/regions. The assessment examined positive and negative impacts of such investment on the EU’s economy, growth strategies and recovery. The team also studied changed work practices in European companies acquired by Chinese firms. Partners completed mapping exercises concerning Chinese investments from within China. They surveyed companies that are investing in Europe and interviewed individuals. Researchers conducted a critical appraisal of the results. Additional investigations helped to identify security issues in Chinese foreign direct investment (FDI) in Europe with regard to critical infrastructure and sensitive assets. The security studies focused on the previous five years, and compared the European and American situations. However, the results will be made public at a later date. The project provided graduate and post-graduate students with opportunities for training and research in business studies. The students participated in both networking and dissemination activities. Case studies based on project findings were used as teaching materials for two summer schools and for master’s programmes at project partner institutions. Three students have entered PhD programmes in partner institutions. CHEUFDI also built research partnerships within the broader context of EU-China relations. The collaboration focused on analysis of economic policy and on the potential mutual benefits of cooperation. One of the project’s ambitions was to launch an ongoing observatory concerned with Chinese FDIs in Europe. Results of the CHEUFDI project will help reveal the nature and effect of Chinese business investment in the European economy. Such information will benefit business studies and can help policymakers interact with China in a more informed way.


Chinese business investment, European economy, CHEUFDI, FDI

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