The Price of Good Investment.docVIP

The Price of Good Investment 　　As China’s outbound direct investment into the EU continues a path of significant growth， its European counterparts have raised questions regarding the validity of investment prices. 　　According to the 2013 Statistical Bulletins of China’s Outward Foreign Direct Investment， China made $4.52 billion of direct investment in the EU in 2013. The Financial Times said in a report on February 10， 2015， that Chinese foreign direct investment into Europe hit $18 billion last year， quadrupling the 2013 level. 　　Against the backdrop of the European Central Bank conducting quantitative easing measures as well as a weakening euro， it is expected that direct investment from China and other countries will be stimulated， due to cheaper European assets and lower financing costs for acquisitions. 　　Since 2015， China’s outbound investment has continued to grow， and Chinese companies have made two big acquisition cases in Europe. In early January， China’s Fosun International Ltd. secured a deal to buy French holiday resort operator Club Méditerranée （Club Med）； in late March， China National Chemical Corp.（ChemChina） purchased Pirelli from Italy， the world’s fifth largest tire maker， for 7.1 billion euros （$7.98 billion）. 　　European media sources have condemned Chinese investors’ low-price purchases. The quantitative easing measure the EU is now using has created opportunities for external investors， including Chinese investors， to buy European assets at low prices， further amplifying such charges. For instance， Fosun’s purchase of Club Med was interpreted as part of a political agenda by the public in France and aroused arguments， resulting in a lengthy merger case. 　　Is it true that Chinese investors are offering low prices or harsh terms？ It goes without saying that the management teams of purchased European companies hold different views. 　　Club Med’s management team had been hoping for acquisition by Chinese investors since they intended to