The Evolution of the Legal Regulation of Foreign Direct Investment in the EU

Foreign direct investment (FDI) has a transformation impact on diverse aspects of the recipient, the quantitative and qualitative characteristics of its assets. According to the investor's intentions and corporate motivation, FDI can bring both new productive capacities, technologies, marketing, and other opportunities, and potential threats to the factors of competitive advantages of the country in which the recipient is located. As FDI flows increase, the opportunities and risks they bring become more significant. First of all, it concerns FDI from PRC and other developing countries in the EU member states. Hence, the problem of legal regulation becomes urgent in the context of developing the appropriate host-country policies framework. To develop effective policies and regulatory mechanisms at the macro-level, capable of maximizing benefits and minimizing threats, the importer must be sufficient to “read” both the strategic goals and corporate motivation of investing TNC at the micro-level in a right way. This study is devoted to the analysis of the evolution of the legal regulation of foreign direct investment in the EU in the context of the activity of TNCs from the PRC, as one of the most active and notable capital importers from a third country.