When in December last year President of Kyrgyzstan Almazbek Atambayev announced intention to cancel the deal with Russia to build two hydropower plants Kambarata-1 and Kambarata-2 and the upper Naryn cascade he also said that government would find another investor to complete the project. Experts without hesitation pointed out at China as a viable option and it looks like they were not mistaken. This week deputy Prime Minister Oleg Pankratov met with the representatives of China’s State Power Investment Corporation to discuss the construction of cascade in Kazarman and four hydropower stations: in Alabuga, Toguz-Toro and two in Kara-bulun with total capacity 1160MW. Chinese company expressed interest in projects and hope that all necessary documents will be produced soon.
Last year was the next in row marked by rapidly growing Chinese investments in European Union member countries. Mercator Institute for China Studies (Merics) and Rhodium Group in the joint report, published in February, estimate that Chinese investments in 2015 reached 20 bln EUR. It’s 20% year-on-year growth. Beginning of this year has brought new wave of planned acquisitions topped by valued at 43 bln usd take over of Swiss Syngenta by the state-owned Chem-China. Chinese officials announced that this was just the beginning of the coming overseas buying spree. Recent acquisitions and bids made by Anbang confirm those promises.
Analysts expect that inclusion of One Belt One Road initiative and Chinese outbound investments in the new Five-Year Plan will trigger yet bigger wave of Chinese capital flows, both private and state owned, seeking investment opportunities abroad. Chinese official announced, that total amount of outbound investments in the next 5 years will reach 1 trln usd. They also declare, that Chinese companies will increase their activities in Europe and China will participate in the implementation of the Juncker plan.
European Union faces challenges of proper reception of the coming inflows of Chinese investments, which can bring enormous benefits but are also accompanied by significant threats and risks for EU member countries. Merics and Rhodium Group made an attempt to analyse the opportunities and threats in their report published in June last year (including data from period 2000-2014) and in already mentioned February’s update (data from 2015)