International
16:51 23 May 2020
Post by: WBJ

EU does not want Chinese investors to take over European companies

EU does not want Chinese investors to take over European companies
Manfred Weber, source: EPP Group

n the European Union, there are growing concerns that European companies' problems related to coronary crisis will result in mass buyouts by Chinese investors.

As a result of the pandemic, many entrepreneurs are either experiencing or expecting huge financial problems. In this regard, concerns have arisen that Chinese entrepreneurs may take over companies in Europe. The fall in share prices in the world especially facilitates such acquisitions. In a slightly different dimension on the US market, Saudi Arabia has already benefited from this opportunity, which has enriched its investment portfolio during a pandemic with shares, including Facebook or Boeing. However, just as Americans are defending their strategic enterprises, Europe is not going to agree to Chinese acquisitions. Hence, recently the chairman of the parliamentary group of the European People's Party in the EP Manfred Weber criticized this phenomenon and called for a ban on Chinese companies being bought by European companies.

"This anxiety has several sources. In many cases, it's difficult to point out the boundaries between the private and public sectors in China. The same applies to the investments of Chinese companies,” Adrian Zwoliński, lawyer and expert of the Confederation of Lewiatan, explained.

China's foreign direct investment in the EU, mainly as mergers and acquisitions, increased until 2016, when it reached a peak of €37.3 billion (around PLN 169.5 billion), and then began to decline. 

(Euractiv


eu
lewiatan
china
adrian zwoliński
manfred weber

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