Chinese investment in Europe: Business strategies and labour impacts Introductory remarks Jan Drahokoupil European Trade Union Institute, Brussels Brussels,

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Presentation transcript:

Chinese investment in Europe: Business strategies and labour impacts Introductory remarks Jan Drahokoupil European Trade Union Institute, Brussels Brussels, 11 December 2014

Headlines I Britain celebrates China investment flow, FT 10 Oct 2014 jan drahokoupil © etui (2014) chinese investment in Europe 2

Headlines II Greece primps for big China state deals, FT 6 Oct 2014 jan drahokoupil © etui (2014) chinese investment in Europe 3

Chinese investment in EU-27, stocks jan drahokoupil © etui (2014) chinese investment in Europe 4

Top 10 countries extra EU-27 inward FDI positions, EU-27 jan drahokoupil © etui (2014) chinese investment in Europe 5

Germany attracts a bulk of Chinese M&A deals jan drahokoupil © etui (2014) chinese investment in Europe 6

Most M&A deals target industrial, consumer, energy sectors jan drahokoupil © etui (2014) chinese investment in Europe 7 Source: Deutsche Bank Research

Chinese investments and contracts selected countries, 2005-Jun 2014 ($bn) jan drahokoupil © etui (2014) chinese investment in Europe 8 Source: Heritage Foundation, graphics: Financial Times

Challenges for labour and European regulatory regimes ● ‘Culture gap, problems with handling human resources’ (a managing partner for Mandarin Capital) ● Labour laws, human resource costs, immigration rules and ‘cultural differences in management style’ as the biggest obstacles to operating in the continent (A survey by the European Union Chamber of Commerce in China ) ● Covec in Poland, 2011: deal to build a road collapsed, repeated breaches of labour law, problems with complying with Polish environmental legislation jan drahokoupil © etui (2014) chinese investment in Europe 9