China as an Investment Power in Europe. College of Europe Policy Brief #19.16, December 2016

Executive Summary > Chinese Foreign Direct Investment (FDI) in Europe has overtaken European FDI in China, in part due to the Chinese ‘Going out’ strategy. > In view of this trend, the broader public and foreign policy circles in big EU member states, such as Germany and the UK, fear a loss oftheir countries’ competitive advantage and technological know-how. > High-profile investment cases have led European countries to introduce safeguards for security-related investments and critical infrastructures. > Putting in place institutions such as the EUChina Comprehensive Agreement on Investment and safeguards for Chinese-funded projects, but also enhancing their legitimacy with the European public will be crucial. > European policy-makers will have to increase their understanding of the variety of Chinese investors, be they state-owned enterprises or private companies, and at the same time avoid demonization of Chinese FDI