[Headline News] CCP’s Investment in Europe Shrinks Significantly

Author: MOS Fitness Group — Ivy001

Editor: MOS Education Group — Jenny

Direct investment in Europe by Communist China dropped significantly last year. According to a joint report by Berlin Mercator Center, Communist China’s investment in EU and UK was about 6.5 billion euros in 2020, about a 45% drop compared to the previous year. This is the lowest percentage in the past decade, and the most serious decline that has occurred in the United Kingdom, where direct investment from Communist China has fallen by 77% last year.

Analyzed in terms of the severe decrease of investment funds by the CCP, it appears that the CCP is expressing its displeasure with European countries, especially the UK. The reason is that they all accuse the CCP of human rights violations and have imposed sanctions on the CCP. By reducing the scale of investment, it looks like the CCP is counter-sanctioning against the European Union and the United Kingdom.

However, the actual situation is quite the opposite; it is the EU countries that have conducted more stringent reviews of corporate mergers and acquisitions from the Chinese Communist Party, which has made some planned corporate acquisitions fail to materialize. 

In fact, the CCP’s investment has always focused on several major areas: important infrastructure, energy industry, information and communications industry, and high-tech industries. If we look at the CCP’s investment separately, there seems to be no problem, but if we summarize all the data, we can clearly see that the CCP occupies a considerable share of these major areas on a global scale. For example, the global media and social media have the CCP’s shadow behind it. From the perspective of national security, all investment from the CCP must be taken very carefully.

This year, the CCP’s global investment will continue to decline because more EU member states have stricter control on direct investment from the CCP or from third countries. At the G7 summit, the G7 members, including the EU, have reached a consensus to address the economic challenges from the CCP. Stricter vetting and control of CCP investments in the European market is an inevitable move, and the CCP will face increasing restrictions in the European market.

Following the U.S., the EU and the UK are also becoming more cautious and scrutinizing CCP investments. The CCP is being expelled from the world’s capital markets.

Picture source: AFP 

https://www.rfi.fr/cn/中国/20210616-中国明显下调对欧对英投资

Proofread/Posted by: Brain Sanitizer

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