Political Impact of Chinese Foreign Direct Investment （FDI） in the European Union （EU）.pdfVIP

JournalofModem AccountingandAuditing，ISSN 1548—6583 December2013，Vo1．9，No．12，1611-1618 毒Ll暑 HlN6 PoliticalImpactofChineseForeignDirectInvestment(FDI) intheEuropeanUnion(EU) M ihaelaCiuchinh Alexandm IoanCuzaUniversity,Iasi，Romania ThispaperexploresthepoliticalchallengesposedbytherecentinfluxofChineseoutwardforeigndirectinvestment (OFDI)intotheEuropeanUnion(EU1．ChineseOFDIhasincreasedsubstantiallyinrecentyeras．Chinesedirect investmentisstillminuteintheEU，butitisgrowingfast，nadhtestrongupwradtrajectoryislikelytocontinuein theyearstocome．ThissurgerepresentschallengesandopportunitiesforEU countries．Inthecurrentcontextof economicna ddebtcrisisinEurope．whetherChinaisseenasasaviourorapredator,thequestionofaFaustian bragainmadebyEuropeancountriesbycouaingnadhostingChineseinvestmentneedstobeasked．Thebenefitsof foreigndirectinvestment(FDI)ofrthehosteconomyarewellknown，butChineseOFDImaycomewithimplicit stringsaRachednadcouldpotentiallyactasaTrojnaHorse，affectingEuropeannormsnadpolicies．Theinfluxof ChineseOFDIcna createna unhealthytrnasatlnaticcompetitionwithsecurityramifications，whichshouldtherefore beaddressed．ItisinterestingtofindtherightbalancebetweenensuringthebenefitsfromChineseFDI(rfomjob creationtoproductiviytgains)nadprotectingfromitsharmfuleffects． Keywords：China，EuropeanUnion(EU)，foreigndirectinvestment(FDI)，politicalchallenges IntrOductiOn Foreigndirectinvestment(FDI)hasbeenapillarofEuropeaneconomicandpoliticalintegrationforthe pastfivedecades．Withthe“TreatyofRome”in1957，sixnationsfoundedtheEuropeanEconomicCommuniyt (EEC)andestablishedacommonmarketbasedonthefourrfeedoms：thefreemov