China Belt and Road Initiative Journal: Research Analysis and Perspectives
Legal, Political, and Security Barriers for Chinese FDI in CEE: Case of Poland
Volume 2, Issue 1, January 2019
Special Issue “16+1” Cooperation and Chinese Investments in Central and Eastern European Countries
In 2016, a flurry of Chinese investments of unprecedented volume of EUR 180 billion—40% more
than a year before—was noted worldwide. Due to this sudden increase, Chinese government itself reacted by imposing new regulations aimed at verifying the quality of future investments. Meanwhile, major European states, Germany and France, as well as the European Commission have been voicing concerns over potential negative results of unchecked expansion of Chinese capital in Europe.
At the same time, between 2015 and 2016 the volume of Chinese FDI in Poland nearly doubled moving from EUR 462 million to EUR 936 million according to estimations of MERICS and Rhodium Group. As part of this process, the Polish economy witnessed the biggest Chinese investment up to date—acquisition of an innovative environmental company Novago by China Everbright International. However, given the increasing concerns over Chinese activity on the European arena, the investment market in Poland may become more demanding due to increasing restrictions. Therefore, facilitating an informed and mature economic cooperation may be more important now than ever before. That is why understanding legal, political and security barriers in China-CEE relations can play a very important role in ensuring smooth economic cooperation.
2. Recent Dynamics within Chinese FDI in CEE
(1) Mechanism of investments
(2) Political challenges
(3) Legal challenges
(4) Security challenges
5. Conclusions and Recommendations