ECA Report on Europe's Reposnse to Chinese Investment Strategy
ECA Report on Europe’s Reposnse to Chinese Investment Strategy
Since the 1980s, China has been implementing a “state-driven investment strategy” to enable a strong export-driven economy. The European Court of Auditors looked at the EU’s response to this strategy. Their review “showed that it was difficult to obtain complete and timely data and thus to gain an overview of investments, which are part of China’s investment strategy in the EU. Furthermore, we found no formalised comprehensive analysis of the risks and opportunities for the EU. Future challenges will be to improve the setting, implementing, monitoring, reporting and evaluation of the EU-China strategy. Another challenge will be to coordinate the response of the EU institutions and Member States, by promoting the exchange of information.”
ECA’s press release states that:
Since the 1980s, China has been implementing an investment strategy that encourages its state-owned enterprises and private companies to invest in strategic sectors abroad. Its two main pillars are the Belt and Road Initiative (BRI) on connectivity and the industrial Made in China 2025 strategy – both aiming at securing the country’s economic growth and influence. The European institutions have undertaken several initiatives – of which the most recent one in 2019 (the EU-China strategic outlook) marked a shift in tone in EU-China relations by referring to China as both a partner and systemic rival. In addition, Member States cooperate with China bilaterally, often according to their own national interests and without informing the Commission even when there is a requirement to do so. Such a fragmented approach fails to promote the economic power of the EU acting collectively. In this context, the auditors highlight particular challenges the EU faces in acting in a timely and coordinated manner where a concerted approach could be an advantage – as in the case of 5G security.