A Study On EU Foreign Direct Investment Framework On Chinese Enterprises

In March 2019,the European Union formally introduced the First Security Review Act for foreign direct investment,the EU foreign direct investment review regulation,at the level of the European Union to establish security and public order-based foreign investment review mechanism.This legislation is the world’s first“Supranational”level security review legislation,causing governments and global investors widely concerned.The author first uses Buzan’s theory of security and Susan Strange’s theory of structural power to analyze the EU’s motivation for the regulation: concern about the high-tech gains from Chinese direct investment in the EU,it would allow China to continue to expand its influence around the world,but it is also concerned that China’s acquisition of dual-use items could increase its military capabilities and threaten national security.And through the data analysis of the direct investment of Chinese enterprises in the EU after the promulgation of the regulation,it is found that Chinese enterprises,especially state-owned enterprises,are greatly affected,in the area of investment the impact has been greater in the area of dual-use items.By analyzing the cases of Chinese Enterprises’ direct investment in EU,this paper concludes that Chinese enterprises can improve the efficiency of acquisition and form Enterprise Synergy with acquired companies by the help of third-party investment banks,the formation of a long-term continuous good acquisition relationship,the loose EU,decision-making power in the hands of member states,these factors contributed to the successful acquisition of Chinese companies in the EU.Most of the failures have been in Germany and Italy,which are particularly sensitive to direct investment from China.At present,bilateral trade between China and the EU is showing rapid growth momentum,and cooperation in economic and trade fields has shown strong vitality,resilience and potential.Therefore,the study on the changes of Chinese Enterprises’ direct investment in EU after the promulgation of the regulation can provide reference for Chinese enterprises.