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Fabio Massimo Parenti, Shi Chen: EU-China Relations in the Framework of the BRI a Critical
Analysis of EU Regulations on Trade and Investments

export weight to GDP is lower t han Italy, Germany or France), increasing wages
and domestic consumption on GDP – in 2016 they contributed to 71% to economic
growth (Xi Jinping, 2017).

It is clear that a more economically independent China, with higher wages and more
domestic competitive firms, plus government legitimate restrictions to support their
growth, limited the opportunities for European firms that have taken advantages for
decades of lower wages in China than in Europe. However, EU countries used to
blame China for poor condition of working and now are putting in place counter-
measures, as discussed. Is there a contradiction between rhetoric and material
interests of EU firms? EU want to have higher access now to sell products to
millions of new Chinese consumers (market seeking investments). Nevertheless,
they have to compete locally and it is not only a question of China’s government
opening up, that is still ongoing according to their needs and priorities.

Now that also China has consolidated is going abroad strategy, outflow investments
(market and technology asset seeking) started to overcome inflow investments in
non-financial sector since 2014 (according to MOFCOM; see also UNCTAD data
the surpass occurred in 2017, with 133 billion in and 183 billion out). Except
different data sources, what is important is the radical reduction of China’s
dependence on foreign investment and the importance of Europe as one of the most
important destination of new Chinese investments ((before Africa and US, and after
Latin America e Asia, (As Michele Geraci (2017) correctly warns, most of the FDI statistics does
not include investment on debt, consequently reducing the role played by Africa in attracting Chinese
ODIs)).

The new EU regulation mentioned above is aimed to target two types of investment:
the acquisition of technological asset in certain sectors (energy, transport,
communications, finance, dual use, raw materials) by state companies for strategic
reasons and the acquisition from foreign firms that do not guarantee reciprocity in
opening up to investments in their own homes. An accusation is that many Chinese
firms are registered as private or foreign even though the state or province have
important shares of the capital so influenced and driven by the public. For some
analyst, this is a threat, or in contradiction with market economy rules, but, as we
explained, it is just a different economic model coherent with the Chinese path of
development. In Europe, we have countries that have sold their assets and other have
created joint venture or reached forms of compromise with the Chinese counterpart.

The economic relations and flows of investments are increasing integration and
generating opportunities. It is important to find acceptable rules for parties involved,

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