Investment Relations between China and the EU

The thesis aimed at mapping and examining the foreign direct investments of China in the EU, with a particular focus on investments in Poland between 2013 and 2020. China is becoming more active in investments and is regarded as a global player in trade and foreign direct investment. The thesis is divided into three main parts. The first chapter introduces the basic theory and motives of FDI and examines China’s investments alongside the Belt and Road initiative and its connection to the EU. The second chapter analyses China’s FDI in the EU based on the data from Statistical Bulletins of China’s outward Foreign Direct Investment and OECD database. It examines FDI stocks and flows, their distribution among EU member states and industries, and the share of SOEs and M&A deals. The third chapter analyses China’s FDI in Poland and some of the motives. Lastly, it discusses significant acquisitions in Poland. In the EU, China’s FDI is mainly distributed in the Netherlands and Luxembourg. The most important industries are the manufacturing, mining, and financial sector, whereas, in Poland, it is primarily the energy and transportation sectors. The investments in Poland show the strong involvement in the Belt and Road initiative based on the motives of improving infrastructure and information about the acquisitions. Furthermore, it is an entry point to the EU in the New Eurasian Land Bridge corridor.