Buying Influence? An Analysis of the Political and Economic Impacts of Chinese Foreign Direct Investment in the European Union

This thesis analyzes the economic and political impacts of the recent influx of Chinese outward foreign direct investment (OFDI) into the European Union (EU). I consider the ways in which EU perceptions of Chinese OFDI have evolved over the course of the past decade as well as what attempts the EU has made at an institutional level to address challenges posed by Chinese investment. I contend that despite institutional efforts to respond to these perceived challenges – namely losing a technological edge, security concerns, and unreciprocated market access – Chinese OFDI in the EU has had a divisive effect. Not only has Chinese OFDI exacerbated economic cleavages within the bloc, but China has parlayed its economic relationship with many smaller EU member states into political leverage