On Thursday 10 September, the European Court of Auditors compiled eighteen political, economic, social, technological and environmental risks relating to Europe’s response to China’s investment strategy in the European Union. If they were to materialise, these risks would have a negative impact on the conditions of competition underpinning the relations between the two partners and competitors, it believes.
These risks include the impact on the security of Chinese investments in strategic EU sectors, insufficient reciprocity in bilateral trade, forced transfers of technology to China, lack of respect for workers’ rights by Chinese companies investing in the EU, infringement of money laundering rules by Chinese companies, awarding of public contracts to Chinese bidders who have submitted abnormally low bids, Chinese breaches of environmental rules, and the impact on public health of increasing connectivity.
Some risks, such as disruptions to European supply chains and the spread of diseases, are not addressed by the European Commission or the European External Action Service.
In addition, the Court of Auditors notes that it is very difficult to get an overview of the investments in the EU of state-controlled Chinese groups, which account for half of the total Chinese investments in Europe. And it observes the lack of a comprehensive analysis of the risks and opportunities associated with Chinese investment in the EU.
See the report: https://bit.ly/32hLqLS (Original version in French by Mathieu Bion)