Chinese Companies are Highly Determined to Buy European Companies
At the EU-China Summit, the leaders of the countries discussed the investments in the Jean-Claude Junker Investment Fund and the state protectionism policy.
Ljubljana. China is increasingly strengthening its position in Europe both with the acquisition of European companies and with the new Silk Road project, which aims to strengthen cooperation between China, the Middle East and Europe. The expert on China issues, Bill Fischer, a professor from the IMD business school (Lausanne, Switzerland), is not too optimistic about the success of the Silk Road. However, despite this, he predicts an increase in the inflow of Chinese capital in the EU.
The 18th Summit of the European Union and China was opened yesterday in Beijing and finished today, during which the Prime Minister of China Li Keqiang hosted the President of the European Council Donald Tusk and the European Commission President Jean-Claude Juncker. It is expected that the Summit is intended to promote economic cooperation between the EU and China, the economy of which is slowing down the pace of development. The EU is the largest trading partner for China, and China is the same for Europe — it is the second trading partner, after the United States. Last year, the EU exchange of commodities with China demonstrated a record deficit of 180 billion euros, because the Chinese companies exported products worth 350 billion euros to Europe, and the European companies exported goods worth 170 billion euros to China. Within the exchange of commodities, the deficit in trading with China was shown by all the EU Member States, except for Germany and Finland. On the other hand, the EU created a record surplus in the sphere of services exchange.
Between the EU and China, there remains a number of unresolved issues, primarily regarding the sale of cheap Chinese goods (for example, steel) in the European markets. Chinese enterprises with dumping prices for steel are flooding Europe, as the European steelmakers note. The European Union does not give China the status of a country with market economy by introducing a number of restrictive measures against dumping. It is planned to discuss these issues during the Summit.
The agenda includes Chinese investments in Europe. The leaders of the countries are expected to work out the political guidelines for preparing a general agreement on investments and adopt an initial list of projects in the field of communication. It is expected that China will also invest funds in the Jean-Claude Junker Investment Fund. The Chinese investments in Europe have increased significantly over the last decade. In this regard, the EU is the most important market for China.