Chinese Direct Investment in the Political and Economic Spheres of the European Union (the Case of Investment in High Technology)

This paper presents a study of the impact of Chinese direct investment on EU regulatory policy and the specifics of bilateral relations between China and EU member countries in the field of high technology, as well as a forecast for the development of EU-China investment relations, by analyzing the database of Chinese investment transactions in the EU, a content analysis of European English-language media and an online survey of high-tech companies from the EU. Based on the analysis of empirical data, the following conclusions are drawn: China seeks to increase capital exports to the EU, especially in high-tech and infrastructure sectors. The EU's strategic response is to develop common regulatory rules. However, CEE countries are interested in increasing Chinese investment infusion, which strengthens the differentiation within the integration union. At the same time, the consequences of Brexit, the global pandemic and the growth of protectionist sentiments of the EU leadership in relation to Chinese FDI, will certainly have a negative impact on the volume of investment flows from China to the EU in the short term.