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Janus Faces of Chinese Investments

Janus Faces of Chinese Investments published on

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)

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