IDEAS home Printed from https://ideas.repec.org/a/tpr/asiaec/v18y2019i2p102-119.html
   My bibliography  Save this article

Geographical and Strategic Factors in Chinese Foreign Direct Investment in Europe

Author

Listed:
  • Xavier Richet

    (Sorbonne Nouvelle University 13, rue de Santeuil 75000 Paris, France)

Abstract

Recently, the volume of Chinese FDI made in Europe has reached the level of European FDI in China (now constrained by restrictions and risks). It equaled the level of FDI made by Chinese firms in the United States before they began to decline in the last two years. The Chinese economic presence in Europe is divided into three parts in terms of volume, destination, and type of acquisition: The heart of Europe is made up of the three major destinations (Germany, UK, France), where more capital-intensive investments are made, followed by other Western European countries (EU-15). New member states (NMS) that joined the EU in 2004, 2007, and 2013, and Western Balkan countries, in accession to the EU, are associated with China in the 16+1 Format (with the exception of Kosovo) and are another gateway to Europe. They receive less direct investment because of smaller market opportunities but China is building infrastructure (ports, highways, railways)—segments of the Silk Road that will bring Chinese products to the mature markets of the EU.

Suggested Citation

  • Xavier Richet, 2019. "Geographical and Strategic Factors in Chinese Foreign Direct Investment in Europe," Asian Economic Papers, MIT Press, vol. 18(2), pages 102-119, Summer.
    • Handle: RePEc:tpr:asiaec:v:18:y:2019:i:2:p:102-119
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/asep_a_00700
    Download Restriction: Access to PDF is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Giovanni Balcet & Hua Wang & Xavier Richet, 2012. "Geely: a trajectory of catching up and asset-seeking multinational growth," Post-Print hal-02313420, HAL.
    2. Peter Nolan, 2012. "Is China Buying the World?," Challenge, Taylor & Francis Journals, vol. 55(2), pages 108-118.
    3. Haley, Usha C.V. & Haley, George T., 2013. "Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy," OUP Catalogue, Oxford University Press, number 9780199773749.
    4. Giovanni Balcet & Hua Wang & Xavier Richet, 2012. "Geely: a trajectory of catching up and asset-seeking multinational growth," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 12(4), pages 360-375.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laura Kromjak, 2021. "Bosnia and Herzegovina's Economic Prospects and Historical Background," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 20(2), pages 148-169.
    2. Joel I. Deichmann & Stephen Grubaugh & Patrick Scholten, 2022. "FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 479-505, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krzywdzinski, Martin & Lechowski, Grzegorz & Jürgens, Ulrich, 2018. "L’inéluctable évolution des modèles productifs chez les constructeurs automobiles chinois et indiens," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12, pages 1-20.
    2. Andoni Maiza & Ricardo Bustillo, 2018. "Analysis of the relevance of China’s development for main European automotive manufacturing countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 403-424, September.
    3. Bolesta, Andrzej, 2015. "Creating a Post-Socialist Developmental State: The Political Economy of China’s Transformation and Development," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 2(4), pages 1-24, December.
    4. Zhang, Feng & Zhu, Lei & Xu, Zhi & Wu, Yingying, 2023. "Moving from reverse engineering to disruptive innovation in emerging markets: The importance of knowledge creation," Technovation, Elsevier, vol. 125(C).
    5. Zheng, Qiuxia & Noorderhaven, Niels & Du, Jian, 2022. "Making the unlikely marriage work: The integration process of Chinese strategic asset-seeking acquisitions," Journal of World Business, Elsevier, vol. 57(3).
    6. Xavier Richet & Xieshu Wang, 2019. "China and Globalization: Internationalization of Firms and Trade in Services," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 3-22.
    7. Xavier Richet, 2013. "L'internationalisation des firmes chinoises : croissance, motivations, stratégies," Working Papers halshs-00796197, HAL.
    8. Lv, Ping & Curran, Louise & Spigarelli, Francesca & Barbieri, Elisa, 2021. "One country, many industries: Heterogeneity of Chinese OFDI motivations at meso level," China Economic Review, Elsevier, vol. 69(C).
    9. Su, Zhong-qin & Xiao, Zuoping & Yu, Lin, 2019. "Do political connections enhance or impede corporate innovation?," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 94-110.
    10. Brewster, Rachel & Brunel, Claire & Mayda, Anna Maria, 2016. "Trade in Environmental Goods: A Review of the WTO Appellate Body's Ruling in US‒Countervailing Measures (China)," World Trade Review, Cambridge University Press, vol. 15(2), pages 327-349, April.
    11. Defever, Fabrice & Reyes, José-Daniel & Riaño, Alejandro & Varela, Gonzalo, 2020. "All these worlds are yours, except india: The effectiveness of cash subsidies to export in nepal," European Economic Review, Elsevier, vol. 128(C).
    12. Peter Nolan, 2015. "The west and China: globalisation and competition in financial services," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 13(2), pages 87-104, May.
    13. Kozo Otsuka & Kaoru Natsuda, 2016. "The Determinants Of Total Factor Productivity In The Malaysian Automotive Industry: Are Government Policies Upgrading Technological Capacity?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-18, September.
    14. Boeing, Philipp, 2016. "The allocation and effectiveness of China’s R&D subsidies - Evidence from listed firms," Research Policy, Elsevier, vol. 45(9), pages 1774-1789.
    15. Kaoru Natsuda & John Thoburn, 2013. "Industrial policy and the development of the automotive industry in Thailand," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(3), pages 413-437.
    16. Bingqiang Li & Shan Wang & Nannan Dong & Jinzhi Li & Xi Li & He Yu, 2023. "Empirical Analysis of Subsidy Industrial Policy’s Effect on Export Innovation in the Chinese Manufacturing," SAGE Open, , vol. 13(4), pages 21582440231, November.
    17. Pengfei Hou, 2024. "Two tigers in one mountain: Europeanising the Western Balkans amid China’s engagement," Asia Europe Journal, Springer, vol. 22(2), pages 165-183, June.
    18. Jungmin Lee & Jai S. Mah, 2018. "Korea’s Foreign Direct Investment in the Automotive Industry in China," China Report, , vol. 54(2), pages 175-193, May.
    19. Junsheng Ha & Pei-Pei Tan & Kim-Leng Goh, 2018. "Linear and nonlinear causal relationship between energy consumption and economic growth in China: New evidence based on wavelet analysis," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-21, May.
    20. Anthony Howell & Chong Liu & Rudai Yang, 2020. "Explaining the urban premium in Chinese cities and the role of place-based policies," Environment and Planning A, , vol. 52(7), pages 1332-1356, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:18:y:2019:i:2:p:102-119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.