From a non-existent player fifteen years ago, China has now become one of the largest senders of Foreign Direct Investment (FDI) flows in the world. By and large, this new provenance of capital has been welcomed by host countries, especially given the drop in other sources of FDI in the wake of the American financial crisis and Euro crisis in the late 2000s. The exponential growth of Chinese direct investment, however, has also been accompanied in some cases by controversy and even resistance, both in developing and in developed economies. In some countries of the European Union (EU), critics have expressed fears and denounced some of the potential dangers of this investment, such as lowering of local labor standards, hollowing out of industrial core through repatriation of assets, and acquisition of dual use technology. The ensuing political backlash has received considerable media attention and increased scrutiny over subsequent deals, notably through the tightening of inbound FDI screening procedures. In other EU countries, however, Chinese FDI has been received with open arms and host countries have become advocates for Chinese interests inside the EU. This talk explores the political challenges posed by the recent explosion of Chinese direct investment in the European Union. First, it considers two alternative explanations for these peculiar political challenges. Second, it explores the implications of these challenges on European unity and policies.
Thursday 14 November 2019, 12.30-2.30 pm
Sciences Po, Room TBA, Paris
More information available here.