EU Nations Must Come Together on Chinese Investment

As Europe becomes a preferred playing field for Chinese foreign direct investment, leaders of bloc nations have been drawn into a debate on the creation of a long-anticipated screening mechanism.

China has the most at stake. While Chinese investment into Europe was insignificant during the first decade of the 21st century, there has been a surge since 2010, partly as a result of the global financial crisis ravaging several southern European economies and buffeting others. Some 35 billion euros ($41.2 billion) was invested last year alone, a 77% increase from 2015, according to the Mercator Institute for China Studies. All 28 members of the EU have taken part in this bounty.

It is thus high time that member states agree on a common approach toward foreign direct investment. European Commission President Jean-Claude Juncker took up this point in his annual State of the Union address last month. "If a foreign state-owned company wants to purchase a European harbor, part of our energy infrastructure or a defense technology firm, this should only happen with transparency," he said.