{"id":8639,"date":"2021-10-28T13:07:32","date_gmt":"2021-10-28T13:07:32","guid":{"rendered":"http:\/\/TheNextWeb=1371258"},"modified":"2021-10-28T13:07:32","modified_gmt":"2021-10-28T13:07:32","slug":"french-wine-and-german-robots-why-chinese-companies-are-investing-big-in-europe","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=8639","title":{"rendered":"French wine and German robots: Why Chinese companies are investing big in Europe"},"content":{"rendered":"\n<p>In recent years, Chinese companies have been substantially increasing their investments in the European Union. From the <a href=\"https:\/\/www.vitisphere.com\/actualite-62860-Medoc-Luc-Thienpont-cede-le-clos-des-Quatre-Vents-et-le-chateau-Bonneau.htm\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">vineyards<\/a> of Bordeaux to <a href=\"https:\/\/www.dw.com\/en\/berlin-approves-kuka-sale-to-midea\/a-19479483\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">robot<\/a> manufacturers in Germany and <a href=\"https:\/\/www.khl.com\/news\/china-s-zoomlion-acquires-cifa\/1025898.article\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">construction<\/a> machinery makers in Italy, these companies have been on a buying spree of unprecedented proportions.<\/p>\n<p>In the EU, the rapid growth has fuelled <a href=\"https:\/\/www.europarl.europa.eu\/thinktank\/en\/document.html?reference=EPRS_BRI%282017%29603941\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">fears<\/a> about the impact of these investments on jobs, technology, and Europe\u2019s long-term industrial capacity, sparking calls for more <a href=\"https:\/\/www.europarl.europa.eu\/doceo\/document\/TA-8-2018-0343_EN.pdf\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">oversight<\/a>. In this context, some see the investment screening mechanism the EU put in place in 2019 as <a href=\"https:\/\/www.institutmontaigne.org\/en\/blog\/china-trends-5-living-eus-investment-screening\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">targeted<\/a> at Chinese companies.<\/p>\n<p>During the pandemic, growing concerns that vital European technology and know-how could be vulnerable to foreign takeover because of the economic downturn led the European Commission to issue <a href=\"https:\/\/trade.ec.europa.eu\/doclib\/press\/index.cfm?id=2124\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">guidelines<\/a> for its member states. To bring greater clarity to the situation, the EU has negotiated a deal with China \u2013 the Comprehensive Agreement on Investment \u2013 to replace the current 26 individual country agreements that exist between all individual member states except Ireland.<\/p>\n<p>The agreement is currently blocked for political reasons, following tit for tat sanctions related to the EU\u2019s concerns about <a href=\"https:\/\/www.europarl.europa.eu\/news\/en\/press-room\/20210517IPR04123\/meps-refuse-any-agreement-with-china-whilst-sanctions-are-in-place\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">human rights violations in Xinjiang province<\/a>. But the debate on how best to adapt to this new context is unlikely to go away.<\/p>\n<p>Much of what we know about Chinese investment in the EU is anecdotal. In a recent <a href=\"https:\/\/doi.org\/10.1016\/j.chieco.2021.101672\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">paper<\/a>, my colleagues and I undertook a thorough analysis of these investments using detailed Chinese data. Our work highlights the great variety of Chinese investments in the EU, in terms of the types of industry and companies involved and different firms\u2019 motivations for investing.<\/p>\n<figure class=\"align-center zoomable\" readability=\"2\">\n<p><figure class=\"post-image post-mediaBleed aligncenter\"><a href=\"https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip\" sizes=\"(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px\" alt=\"Map of Chinese outward foreign direct investment in EU countries (2006-2015)\" width=\"600\" height=\"379\" class=\"js-lazy\" data-srcset=\"https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=379&amp;fit=crop&amp;dpr=1 600w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=379&amp;fit=crop&amp;dpr=2 1200w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=379&amp;fit=crop&amp;dpr=3 1800w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=477&amp;fit=crop&amp;dpr=1 754w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=477&amp;fit=crop&amp;dpr=2 1508w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=477&amp;fit=crop&amp;dpr=3 2262w\"><noscript><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip\" alt=\"Map of Chinese outward foreign direct investment in EU countries (2006-2015)\" width=\"600\" height=\"379\" class srcset=\"https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=379&amp;fit=crop&amp;dpr=1 600w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=379&amp;fit=crop&amp;dpr=2 1200w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=379&amp;fit=crop&amp;dpr=3 1800w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=477&amp;fit=crop&amp;dpr=1 754w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=477&amp;fit=crop&amp;dpr=2 1508w, https:\/\/images.theconversation.com\/files\/428490\/original\/file-20211026-15-1c996rq.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=477&amp;fit=crop&amp;dpr=3 2262w\"><\/noscript><\/a><figcaption><a href=\"https:\/\/thenextweb.com\/news\/french-german-robots-chinese-companies-investing-europe-syndication#\" data-url=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Feditorial.thenextweb.com%2Fhardfork%2F2021%2F10%2F28%2Ffrench-german-robots-chinese-companies-investing-europe-syndication%2F&amp;via=thenextweb&amp;related=thenextweb&amp;text=Check out this picture on: Map of Chinese outward foreign direct investment in EU countries (2006-2015). Fourni par l\u2019auteur\" data-title=\"Share Map of Chinese outward foreign direct investment in EU countries (2006-2015). Fourni par l\u2019auteur on Twitter\" data-width=\"685\" data-height=\"500\" class=\"post-image-share popitup\" title=\"Share Map of Chinese outward foreign direct investment in EU countries (2006-2015). Fourni par l\u2019auteur on Twitter\"><i class=\"icon icon--inline icon--twitter--dark\"><\/i><\/a>Map of Chinese outward foreign direct investment in EU countries (2006-2015). Fourni par l\u2019auteur<\/figcaption><\/figure><figcaption><\/figcaption><\/p>\n<\/figure>\n<h2>Why China invests in Europe<\/h2>\n<p>Our paper is based on a database covering nearly 800 Chinese investments in industrial sectors in Europe between 2006 and 2015.<\/p>\n<p>Chinese companies must declare their overseas investments to the government and these declarations provide valuable information about where they are investing and why. The declarations include the country and industry they invested in and whether the investment involves supporting their sales to Europe, manufacturing goods locally or conducting research and development.<\/p>\n<p>Germany was the top choice for Chinese companies investing in Europe, followed by the UK, Netherlands, and Italy.<\/p>\n<p>Over time, we found that investments for sales have fallen from 70% to less than half of total investments, while research and development and manufacturing have become more important. This shows that the notion that Chinese firms see Europe purely as a market, rather than a base for manufacturing and research, is clearly outdated. Many Chinese firms invest in Europe to produce there.<\/p>\n<p>These types of investments are particularly important for Chinese sectors that already have high levels of investment at home. Firms that invest a lot in production in China tend to do the same in Europe, potentially guaranteeing thousands of European jobs.<\/p>\n<h2>The role of the state<\/h2>\n<p>Given concerns about the role of the Chinese government in the economy and business, we also looked at whether we could see differences in investment behavior in industries where the state has a stronger role.<\/p>\n<p>We found that sectors, where state-owned enterprises are more predominant, tend to invest in manufacturing and research, while those in sectors identified as \u201cencouraged industries\u201d by the government (a varied group that includes textiles and civil satellites) are more likely to invest in sales.<\/p>\n<p>So domestic government policy does seem to have an impact on the types of investment Chinese firms make in Europe.<\/p>\n<p>We also looked in detail at how various characteristics of Chinese and European industries affected the types of investments made.<\/p>\n<p>In more traditional established European industries and those with high growth rates, such as motor vehicles in the UK and Germany and chemicals in Hungary and the Netherlands, Chinese investors are more motivated by research and development than the market. Investments from high-tech Chinese sectors were more focused on both research and development and manufacturing.<\/p>\n<h2>Wine and robots<\/h2>\n<p>It is difficult to make generalizations about Chinese investors and why they invest in Europe. The wealthy <a href=\"https:\/\/objectifaquitaine.latribune.fr\/business\/2016-09-16\/vignobles-peter-kwok-le-k-a-part-des-investissements-asiatiques.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">individual<\/a> buying a vineyard in France will have very different motivations to the company buying the key German producer of industrial robots.<\/p>\n<p>Even within sectors, there are big differences. <a href=\"https:\/\/wine-economics.org\/wp-content\/uploads\/2014\/09\/AAWE_WP168.pdf\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">My previous work<\/a> on Chinese investment in the French wine sector found that in some cases the investment was instrumental in moving the vineyards to new levels of growth and internationalization, whereas in others there were significant cultural clashes and management difficulties.<\/p>\n<p>In this varied context, it is difficult to make comprehensive judgments about the extent to which existing and future Chinese investments could be problematic going forward. What\u2019s clear is that the more we know about these and other foreign investments in Europe, the better armed we are to decide whether and how to regulate them.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/counter.theconversation.com\/content\/169181\/count.gif?distributor=republish-lightbox-basic\" alt=\"The Conversation\" width=\"1\" height=\"1\" class=\"js-lazy\"><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https:\/\/theconversation.com\/republishing-guidelines --><\/p>\n<p><noscript><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/counter.theconversation.com\/content\/169181\/count.gif?distributor=republish-lightbox-basic\" alt=\"The Conversation\" width=\"1\" height=\"1\" class><\/noscript><\/p>\n<p><em>Article by <a href=\"https:\/\/theconversation.com\/profiles\/louise-curran-1217949\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Louise Curran<\/a>, Professor of International Business, <a href=\"https:\/\/theconversation.com\/institutions\/tbs-business-school-2347\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">TBS Business School <\/a><\/em><\/p>\n<p><em>This article is republished from <a href=\"https:\/\/theconversation.com\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">The Conversation<\/a> under a Creative Commons license. Read the <a href=\"https:\/\/theconversation.com\/why-chinese-companies-are-investing-in-french-wine-and-german-robots-169181\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">original article<\/a>.<\/em><\/p>\n<p> <a href=\"https:\/\/thenextweb.com\/news\/french-german-robots-chinese-companies-investing-europe-syndication\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In recent years, Chinese companies have been substantially increasing their investments in the European Union. From the vineyards of Bordeaux to robot manufacturers in Germany and construction machinery makers in Italy, these&#8230;<\/p>\n","protected":false},"author":1,"featured_media":8640,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/8639"}],"collection":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8639"}],"version-history":[{"count":0,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/8639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/media\/8640"}],"wp:attachment":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}