Open AccessDevelopment and Impact of Chinese Investment in EU
Author(s) -
Nguyen Thanh Hung
Publication year - 2016
Publication title -
creative and knowledge society
Language(s) - English
Resource type - Journals
eISSN - 1338-5283
pISSN - 1338-4465
DOI - 10.1515/cks-2016-0003
Subject(s) - european union , china , market liquidity , politics , foreign direct investment , business , investment (military) , stock (firearms) , asset (computer security) , market economy , economics , international economics , finance , economic policy , macroeconomics , political science , mechanical engineering , computer security , computer science , law , engineering
In this paper examines the roles and influence of China in the world and, mainly, in European Union. For a decade, Chinese investors have been looking for opportunities to buy european assets. Especially since the beginning of the 2008 crisis we observed an increase of investment activities of Chinese companies. During the crisis, cash troubled european companies due to loss of liquidity were forced to sell their shares at significant discount. Over time, with stabilizing the economic situation in Europe, European companies asset prices seemingly ceased to be cheap, nevertheless a volume of Chinese FDI to Europe continued to grow. Our goal will be detailed insight into these investments and try to identify the benefits and risks of these investments. Moreover, this paper not only provide insight into economic development of Chinese FDI but also take into account political issues and background of these investment. As far as a methodology is concerned, the basis of our work will be comparing an impact of Chinese investments in European countries and their impact on economic development in selected countries. In particular, we are interested in the behavior of Chinese investors and their motivation to buy in Europe. At the same time it will also be interested in the motives of European companies that have decided to sell shares to new owners. Finally, we will also examine ways in which Chinese investors proceed with acquisitions in the EU. Data comes from Eurostat, the national statistical offices and stock market prices. We will also be examining the political influence on these countries individually and globally, therefore as part of the EU. Based on the gained information we will try to assess the current situation of China’s influence in the euro area and at the same time try to estimate its future impact. Finally, based on the detected information to analyze the results of our research.