China Belt and Road Initiative Journal: Research Analysis and Perspectives
The Impact of Chinese Immigrants Networks on China’s FDI towards EU
Shang Yuhong, Yang Chencheng
Volume 2, Issue 1, January 2019
Special Issue “16+1” Cooperation and Chinese Investments in Central and Eastern European Countries
China’s FDI towards EU is of far-reaching importance to China’s economic development. European
Union, one of the world’s most developed economies, with a huge market, advanced technology and
stable social environment, is an ideal destination for Chinese OFDI enterprises. As a country attaches
great importance to relationship, China’s economic development has also been greatly benefited from the overseas Chinese business networks, mainly through its improvement on international trade and investment situation.
2. Chinese Migrant Networks, Businesses and Investments in EU
(1) Some key features of the China’s FDI towards EU
First, EU is a key developed destination of China’s OFDI and at the same time China plays an
important role in the Asian investment towards EU.
Second, China’s OFDI features wide distribution, high concentration in both country
distribution and industry distribution.
Third, the policy pluralism and culture diversity of European countries cause Chinese investors
extra costs and risks investing in EU compared to other developed economy.
(2) A brief history of Chinese immigrants and business in Europe
(3) Characteristics of Chinese immigrants and business in Europe
(4) Possible interactions between CMN and FDI industry distribution
3. The Empirical Specification
(1) Models FDI with Chinese migrant networks
(3) Regression results
Result of overall FDI and Chinese Immigrants networks
Result of industry-selected FDI and Chinese Immigrants networks
Group regression on service industry and Industry
Group regression on traditional European Chinese business and nontraditional European