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China’s Relations with U.S. Allies and Partners in Europe


Thank you for the opportunity to testify before this distinguished commission on the topic of “China’s relations with U.S. allies and partners in Europe”.1I commend this commission for convening this hearing. My testimony will address three different topics:

  1. Overview of China’s economic and political activities in Europe
  2. European responses to China’s activities
  3. U.S. interests and policy recommendations

Over the past decade, China’s economic activities in Europe have been steadily increasing. Chinese foreign direct investment in Europe has soared from under €1 billion in 2008 to €35 billion in 2016.2 Examples of Chinese economic activities include: acquisitions of European companies in a variety of strategic fields, most notably in the technology sector; sustained investment into existing critical infrastructure; and the provision of funding for new infrastructure projects.

The bulk of Chinese investments are directed at Western Europe, where Beijing has been making inroads in key economic sectors. Originally, Chinese investments in Europe were fairly balanced between public and private operators. However, in 2010 it became clear that state-owned enterprises were in the lead, accounting for perhaps 70% of total Chinese foreign direct investments (FDI) within the EU. There is a growing concern that Chinese investments in Europe are not guided solely by business imperatives but are rather part of a concerted state-driven strategy.  Read More


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