Chinese foreign direct investments in the EU energy sector

Titolo Rivista ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori José Miguel Asensio, Alessandro Fiorini, Juan Pablo Jimenez Navarro
Anno di pubblicazione 2019 Fascicolo 2018/2
Lingua Inglese Numero pagine 23 P. 207-229 Dimensione file 623 KB
DOI 10.3280/EFE2018-002011
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

The European Union (EU) is not only China’s biggest trading partner but also a crucial destination for Chinese foreign direct investment (FDI). During the past 15 years, Chinese FDI transactions have gained momentum, coinciding with the "Going Abroad", "Going Global" and "Belt and Road" strategies. During the post-financial crisis, the EU became the fastest growing destination for Chinese FDI triggered by a friendly investment environment and the undervaluation of forcefully privatized assets. Investments in the EU Low Carbon Energy Technologies (LCET) sector reflect a commercial and political strategy led by the Chinese government, promoting sustainable energy development as well as securing the privileged position of state-owned energy companies. Chinese state-backed companies account for a large share of FDI transactions LCET in the EU. The recently adopted "Made in China 2025" strategy gives grounds for expecting an increase in strategically motivated FDI. The increase in investment has fuelled the debate whether the EU possess sufficient policy instruments to protect national and supranational interests and to control FDI.

Keywords:Foreign direct investment, china, low carbon energy technologies, energy investments, energy policy.

Jel codes:F21, E22, Q20

  1. Curran, L., Lv, P., Spigarelli, F. (2017). Chinese investment in the EU renewable energy sector: Motives, synergies and policy implications. Energy Policy, 101: 670-682.
  2. De Matteis, P. (2010). EU-China cooperation in the field of energy, environment and climate change. Journal of Contemporary European Research, 6: 449-477.
  3. Deng, P. (2012). The internationalization of Chinese firms: A critical review and future research. International Journal of Management Reviews, 14(4): 408-427.
  4. European Commission (2015). COM(2015) 80 final. A framework strategy for a resilient Energy Union with a forward-looking climate change policy, 25.02.2015, Brussels.
  5. European Commission (2017a). COM(2017) 240. Reflection paper on harnessing globalisation. 10 May 2017. Brussels. From: -- http://ec.europa.eu/commission/sites/betapolitical/files/reflection-paper-globalisation_en.pdf. Access on: 18 April 2018.
  6. European Commission (2017b). COM(2017) 487 final. Regulation of the European Parliament and of the Council establishing a framework for screening of foreign direct investments into the European Union. 13.9.2017, Brussels.
  7. European Commission (2017c). EU-China Roadmap on energy cooperation (2016-2020). Brussels. From: -- http://ec.europa.eu/energy/sites/ener/files/documents/FINAL_EU_CHINA_ENERGY_ROADMAP_EN.pdf. Access on: 18 April 2018.
  8. European Commission (2017d). Greenfield Investment Monitor. In Focus: China’s Expansion in the EU. Brussels. From: -- http://ec.europa.eu/epsc/sites/epsc/files/greenfieldinvestment-monitor-1.pdf. Access on: 18 April 2018.
  9. Gippner, O., Torney, D. (2017). Shifting policy priorities in EU-China energy relations: Implications for Chinese energy investments in Europe. Energy Policy, 101: 649-658.
  10. Godement, F. (2007). China’s energy policy: from self-sufficiency to energy efficiency. The International Spectator, 42(3): 391-397. DOI: 10.1080/03932720701567596
  11. Goron, C. (2018). Fighting against climate change and for fair trade: finding the EU’s interest in the solar panels dispute with China.
  12. Grieger, G. (2017). Foreign direct investment screening: A debate in light of China-EU FDI flows. EPRS – European Parliament Research Service, From: -- http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/603941/EPRS_BRI(2017)603941_EN.pdf. Access on: 18 April 2018.
  13. Haley, U.C., Haley, G.T. (2013). Subsidies to Chinese industry: state capitalism, business strategy, and trade policy. Oxford University Press.
  14. Neary, J.P. (2009). Trade costs and foreign direct investment. International Review of Economics & Finance, 18(2): 207-218.
  15. Algieri, B., Aquino, A., Succurro, M. (2011). Going “green”: trade specialisation dynamics in the solar photovoltaic sector. Energy Policy, 39(11): 7275-7283.
  16. OECD (2017). FDI Regulatory Restrictiveness Index. OECD Publishing, Paris. From: -- http://www.oecd.org/investment/fdiindex.htm. Access on: 18 April 2018.
  17. Pareja-Alcaraz, P. (2017). Chinese investments in Southern Europe’s energy sectors: Similarities and divergences in China’s strategies in Greece, Italy, Portugal and Spain. Energy Policy, 101: 700-710.
  18. Ru, P., Zhi, Q., Zhang, F., Zhong, X., Li, J., Su, J. (2012). Behind the development of technology: The transition of innovation modes in China’s wind turbine manufacturing industry. Energy Policy, 43: 58-69.
  19. Shen, W. (2016). Who drives China’s renewable energy policies? Understanding the role of industrial corporations. Environmental Development, 21: 87-97.
  20. Sovacool, B.K., Brown, M.A. (2010). Competing Dimensions of Energy Security: An International Perspective. Annual Review of Environment and Resources, 35(1): 77-108.
  21. Sun, X., Li, J., Wang, Y., Clark, W.W. (2014). China’s Sovereign Wealth Fund Investments in overseas energy: The energy security perspective. Energy Policy, 65: 654-661.
  22. Tan, X. (2013). China’s overseas investment in the energy/resources sector: Its scale, drivers, challenges and implications. Energy Economics, 36: 750-758.
  23. Urban, F., Zhou, Y., Nordensvard, J., Narain, A. (2015). Firm-level technology transfer and technology cooperation for wind energy between Europe, China and India: From North-South to South-North cooperation? Energy for Sustainable Development, 28: 29-40.
  24. Wang, K.C.A., Lin, C.H.A., Chiou, J.R. (2011). Tariff Jumping Foreign Direct Investment Decision in a Quality‐Differentiated Market. Pacific Economic Review, 16: 466-488.
  25. Xu, B. (2010). The sophistication of exports: Is China special? China Economic Review, 21: 482-493.
  26. Xu, B., Lu, J. (2009). Foreign direct investment, processing trade, and the sophistication of China’s exports. China Economic Review, 20: 425-439.
  27. Young, S., Lan, P. (1997). Technology transfer to China through foreign direct investment. Regional Studies, 31: 669-679. DOI: 10.1080/00343409750130759
  28. Zhang, C. (2017). EU-China Energy Cooperation: An Institutional Analysis (February 2017). EIAS – European Institute for Asian Studies, From: -- http://www.eias.org/wp-content/uploads/2016/03/EIAS_Briefing_Paper_EU_China_Energy_Cooperation_2017.02.pdf. Access on: 18 April 2018.
  29. Zhang, S., Andrews-Speed, P., Ji, M. (2014). The erratic path of the low-carbon transition in China: Evolution of solar PV policy. Energy Policy, 67: 903-912.
  30. Zhang, S., Andrews-Speed, P., Zhao, X., He, Y. (2013). Interactions between renewable energy policy and renewable energy industrial policy: Acritical analysis of China’s policy approach to renewable energies. Energy Policy, 62: 342-353.
  31. Bennett, D., Liu, X., Parker, D., Steward, F., Vaidya, K. (2001). Technology transfer to China: a study of strategy in 20 EU industrial companies. International Journal of Technology Management, 21(1/2): 151-182.
  32. Blonigen, B.A., Davies, R.B. (2004). The effects of bilateral tax treaties on US FDI activity. International Tax and Public Finance, 11: 601-622.
  33. Burgos-Payán, M., Roldán-Fernández, J.M., Trigo-García, Á.L., Bermúdez-Ríos, J.M., Riquelme-Santos, J.M. (2013). Costs and benefits of the renewable production of electricity in Spain. Energy Policy, 56: 259-270.
  34. Campoccia, A., Dusonchet, L., Telaretti, E., Zizzo, G. (2014). An analysis of feed’in tariffs for solar PV in six representative countries of the European Union. Solar Energy, 107: 530-542.
  35. Carbaugh, R.J., St Brown, M. (2012). Industrial policy and renewable energy: Trade conflicts. Journal of International and Global Economic Studies, 5: 1-16.
  36. Child, J., Rodrigues, S.B. (2005). The internationalization of Chinese firms: a case for theoretical extension? Management and Organization Review, 1: 381-410.
  37. Curran, L. (2009). EU trade defence actions against China and their impacts: the cases of textiles and footwear. Journal of World Trade, 43: 1281-1297.
  38. Hanemann, T., Huotari, M. (2015). Chinese FDI in Europe and Germany: Preparing for a new era of Chinese capital. Mercator Institute for China Studies and Rhodium Group, From: -- http://www.iberchina.org/files/ChineseFDI_Europe_Mercator.pdf. Access on: 18 April 2018.
  39. Hanemann, T., Huotari, M. (2016). A new record year for Chinese outbound investment in Europe. Mercator Institute for China Studies, -- https://www.stiftungmercator.de/media/downloads/3_Publikationen/MERICS_A_New_Record_Year_for_Chinese_Outbound_Investment_in_Europe_20160216.pdf. Access on: 18 April 2018.
  40. Hanemann, T., Huotari, M. (2017). Record Flows and Growing Imbalances, Chinese Investment in Europe in 2016. Mercator Institute for China Studies and Rhodium Group, From: -- https://www.merics.org/sites/default/files/2017-09/MPOC_3_COFDI_2017.pdf. Access on: 18 April 2018.
  41. Hong, E., Sun, L. (2006). Dynamics of internationalization and outward investment: Chinese corporations’ strategies. The China Quarterly, 187: 610-634.
  42. IEA (2017). World Energy Outlook 2017. OECD Publishing, Paris. -- From: http://www.iea.org/weo2017/. Access on: 18 April 2018.
  43. Jarreau, J., Poncet, S. (2012). Export sophistication and economic growth: Evidence from China. Journal of Development Economics, 97: 281-292.
  44. Jia, J.X. (2015). Chinese ODI in Europe: Trends and Implications for the EU. EU Asia Centre -- From: http://www.eu-asiacentre.eu/documents/uploads/pub_174_chinese_odi_in_europe-_trends_and_implications_for_the_eu.pdf. Access on: 18 April 2018.
  45. Kamiński, T. (2017). Sovereign Wealth Fund investments in Europe as an instrument of Chinese energy policy. Energy Policy, 101: 733-739.
  46. Kennedy, S., Johnson, C.K. (2016). Perfecting China, Inc.: China’s 13th Five-Year Plan. CSIS – Center for Strategic and International Studies, From: -- http://csis-prod.s3.amazonaws.com/s3fs-public/publication/160521_Kennedy_PerfectingChinaInc_Web.pdf. Access on: 18 April 2018.
  47. Liedtke, S. (2017). Chinese energy investments in Europe: An analysis of policy drivers and approaches. Energy Policy, 101: 659-669.
  48. Liu, J., Goldstein, D. (2013). Understanding China’s renewable energy technology exports. Energy Policy, 52: 417-428.
  49. Liu, X., Burridge, P., Sinclair, P.J. (2002). Relationships between economic growth, foreign direct investment and trade: evidence from China. Applied Economics, 34: 1433-1440. DOI: 10.1080/00036840110100835
  50. Luo, Y., Xue, Q., Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of World Business, 45: 68-79.
  51. Lv, P., Spigarelli, F. (2015). The integration of Chinese and European renewable energy markets: The role of Chinese foreign direct investments. Energy Policy, 81: 14-26.
  52. Mazzucato, M. (2013). The entrepreneurial state, debunking private vs. public sector myths. London: Anthem Press.
  53. Mazzucato, M., Semieniuk, G. (2018). Financing renewable energy: Who is financing what and why it matters. Technological Forecasting and Social Change, 127: 8-22.
  54. McCarthy, K.J. (2016). On the influence of the European trade barrier on the chinese pv industry: Is the solution to the solar-dispute “successful”? Energy Policy, 99: 154-157.
  55. Motta, M. (1992). Multinational firms and the tariff-jumping argument: a game theoretic analysis with some unconventional conclusions. European Economic Review, 36: 1557-1571.
  56. Nahm, J., Steinfeld, E.S. (2014). Scale-up nation: China’s specialization in innovative manufacturing. World Development, 54: 288-300.

  • Handbook of Smart Energy Systems Marina Alonso Villota, Etienne Willkomm, Stefan Pickl, pp.2329 (ISBN:978-3-030-97939-3)
  • Handbook of Smart Energy Systems Marina Alonso Villota, Etienne Willkomm, Stefan Pickl, pp.1 (ISBN:978-3-030-72322-4)

José Miguel Asensio, Alessandro Fiorini, Juan Pablo Jimenez Navarro, Chinese foreign direct investments in the EU energy sector in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 2/2018, pp 207-229, DOI: 10.3280/EFE2018-002011