EU investment rules leave over 80 per cent of Chinese firms feeling discriminated against, survey says
- The European Union is the largest recipient of Chinese investment, but the bloc introduced new rules on foreign investment in April
- Chinese foreign direct investment into Europe and North America fell sharply in 2018, declining from US$111 billion in 2017 to US$30 billion in 2018
More than 80 per cent of Chinese firms believe they are discriminated against when investing in European Union countries as China’s overseas acquisition are increasingly scrutinised, according to a survey compiled by a Chinese trade body.
The European Union is the largest recipient of Chinese investment, but new rules on the screening of foreign investment introduced at the start of April target areas that have had the most Chinese investment, including manufacturing, lease and commercial research, scientific research and advanced technology.
The new mechanism requires the sharing of information about non-EU investment in critical sectors and allows member states to question deals they perceive to be detrimental to the bloc’s interests.
As many as 85 per cent of the respondents to the survey by the China Council for the Promotion of International Trade, Beijing’s arm to promote Chinese exports and business interests overseas, believe the legislation concerning foreign investment screening will lead to unfair treatment of Chinese enterprises.
In terms of companies, 83.9 per cent of the respondents from state-owned firms said that the EU’s tightened foreign investment review would subject Chinese companies to unfair treatment, while 69.4 per cent said they have faced tougher review because of state ownership.
The survey, which was released on Tuesday, was conducted throughout last year interviewed over 140 Chinese firms and received 236 replies after sending out a questionnaire to 500 companies.